In the model of Myers and Majluf, the condition v < s (H-L) ensures that there exists
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Question:
In the model of Myers and Majluf, the condition v < s (H-L) ensures that there exists a separating equilibrium under which only firms of type L carry out the investment project. What is the condition that ensures the existence of a pooling equilibrium under which firms of type H as well as firms of types L both carry out the investment project?
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