Time Trumps Quantity in the Market for Lemons

Piero Gottardi,Humberto Moreira, William Fuchs   Nov 15,2022

Working Paper No.00085-00

We consider a dynamic adverse selection model where privately informed sellers of divisible assets can choose how much of their... Read More

Bayesian Doublespeak

Alice Hsiaw, Ing-Haw Cheng   Nov 15,2022

Working Paper No.00086-00

Why does misinformation persist, and how does it distort the long-run beliefs and actions of rational agents? Suppose receivers see... Read More

Providing Incentives with Private Contracts

Qing Liu, Lucy White Andrea Buffa   Nov 18,2022

Working Paper No.00073-01

Agents working together to produce a joint output care about each other’s incentives. Because real world contracts are typically private... Read More

Lending and Monitoring: Big Tech vs Banks

Catherine Casamatta,Rui xiong, Matthieu Bouvard   Nov 21,2022

Working Paper No.00087-00

We show that by lending to merchants and monitoring them, an e-commerce platform can price-discriminate between merchants with high and... Read More

Antitrust, Regulation, and User Union in the Era of Digital Platforms and Big Data

Simon Mayer , Lin William Cong (叢林)   Nov 28,2022

Working Paper No.00088-00

We model platform competition with endogenous data generation, collection, and sharing, thereby providing a unifying framework to evaluate data-related regulation... Read More

The Coming Battle of Digital Currencies

Simon Mayer , Lin William Cong (叢林)   Nov 28,2022

Working Paper No.00089-00

We model the dynamic competition among national fiat currencies, cryptocurrencies, and Central Bank Digital Currencies (CBDCs), whereby countries strategically digitize... Read More

Markets for Financial Innovation

Kinda Hachem , Ana Babus   Dec 02,2022

Working Paper No.00090-00

We develop a theory of financial innovation in which both market structure and the payoffs of the claims being traded... Read More

Incentive Constrained Risk Sharing, Segmentation, and Asset Pricing

Johan Hombert, Bruno Biais , Pierre-Olivier Weill   Mar 29,2021

Working Paper No.00070-00

Incentive problems make securities’ payoffs imperfectly pledgeable, limiting agents’ ability to issue liabilities. We analyze the equilibrium consequences of such... Read More

Strategic Fragmented Markets

Ana Babus , Cecilia Parlatore   Apr 30,2021

Working Paper No.00071-00

We study the determinants of asset market fragmentation in a model with strategic investors that disagree about the value of... Read More

Published: Journal of Financial Economics, 2022, 145(), 876-908

Endogenous Specialization and Dealer Networks

Batchimeg Sambalaibat   Jul 07,2021

Working Paper No.00014-02

We build a directed search model of network formation. We propose that a core-periphery interdealer network arises from dealer specialization. Read More