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Aggregation and Design of Information in Markets with Adverse Selection

Brett Green , William Fuchs , Vladimir Asriyan   Nov 05,20190

How effectively does a decentralized marketplace aggregate information that is dispersed throughout the economy? We study this question in a... Read More

Collateral Booms and Information Depletion

Luc Laeven,Alberto Martin, Vladimir Asriyan   Nov 05,20190

We develop a new theory of information production during credit booms. In our model, entrepreneurs need credit to undertake investment projects,... Read More

Tragedy of Complexity

Martin Oehmke , Adam Zawadowski   Nov 18,2019

This paper presents an equilibrium theory of product complexity. Complex products generate higher potential value, but require more attention from... Read More

Demand Disagreement

Christian Heyerdahl-Larsen, Philipp Illeditsch   Dec 13,2019

We develop an overlapping generations model with disagreement about the cross-sectional distribution of investors’ preferences and beliefs. This disagreement implies... Read More

Optimal Short-Termism

Alejandro Rivera, Tak-Yuen Wong, Alejandro Rivera, Tak-Yuen Wong, Dirk Hackbarth   Jan 14,2018

This paper studies incentives in a dynamic contracting framework of a levered firm. In particular, the manager selects long-term and... Read More

Learning in Crowded Markets

Peter Kondor , Adam Zawadowski   Mar 12,2018

We study a capital reallocation problem in which  investors can enter into a new market where they compete with each other... Read More

Optimal Contracting and the Organization of Knowledge

luis garicano,luis rayo, William Fuchs   Jul 30,2018

We study contractual arrangements that support an efficient use of time in a knowledge- intensive economy in which agents... Read More

Why is capital slow moving? Liquidity hysteresis and the dynamics of limited arbitrage

James Dow,Jungsuk Han, Francesco Sangiorgi   Sep 20,2018

Will arbitrage capital flow into a market experiencing a liquidity shock, mitigating the adverse effect of the shock on price... Read More

The Market for Conflicted Advice

Briana Chang , Martin Szydlowski   Sep 21,2018

We present a model of the market for advice in which advisers have conflicts of interest and compete for... Read More

Trust in Signals and the Origins of Disagreement

Alice Hsiaw, Ing-Haw Cheng   Dec 14,2018

Why do individuals interpret the same information differently? We propose that individuals follow Bayes' Rule when forming posteriors with one exception:... Read More