In our paper, we attempt to connect Kornai's soft budget constraint concept with the methodology used in financial option pricing. To our knowledge, this approach is unprecedented in the literature. Due to the option pricing framework, the effects of bailouts are not described as individual, socio-economic phenomena, but as statistical ones. We show how Markov chains and Monte Carlo simulation can be used in answering some questions arising in connection with hospitals' bailouts. Our results suggest that in case of more institutions, the effectiveness of the bailouts depends primary on how much the liquidity and bankruptcy processes of the hospitals are corre-lated - and not on the division of the bailouts among them.
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