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A credit design for irrationally pessimist entrepreneurs

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Figure 1: s-shaped value function
Table 1: Summary First Case C = G and S = |N | S ≤ C < G and S = |N | minS = π(p(β |RDU | w ))−π(p(β g )) = C if S = minS + α where α > 0 : f or C = S → is satisf ied anywhere

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