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Siphoned Apart: A Portfolio Perspective on Order Flow Segmentation

Bart Yueshen Zhou, Markus Baldauf Joshua Mollner   May 16,2024

Working Paper No.00094-01

We study liquidity supply in fragmented markets. Market makers intermediate heterogeneous order flows, trading off spread revenue against inventory costs.... Read More

Published: Journal of Financial Economics, 2024, 154(), 103807-

Hysteresis in price efficiency and the economics of slow moving capital

James Dow , Jungsuk Han Francesco Sangiorgi   Jun 24,2024

Working Paper No.00140-00

Will arbitrage capital flow into markets experiencing shocks, mitigating adverse effects on price efficiency? Not necessarily. In a dynamic model... Read More

Cournot Competition, Informational Feedback, and Real Efficiency

Xiaohong Huang,Siguang Li,Jian Ni, Lin William Cong (叢林)   Nov 21,2024

Working Paper No.00143-00

We revisit the relationship between firm competition and real efficiency in a novel setting with informational feedback from financial markets.... Read More

Intermediary Capital Constraints and Market Power

Jason Allen, Milena Wittwer   Jul 18,2023

Working Paper No.00110-00

We examine how intermediary capitalization affects  asset prices in a framework that allows for intermediary market power.  We introduce a... Read More

Economic Growth through Diversity in Beliefs

Christian Heyerdahl-Larsen,Howard Kung, Philipp Illeditsch   Aug 20,2023

Working Paper No.00126-00

We study a macro-finance model with entrepreneurs who have diverse views about the likelihood that their ideas will lead to... Read More

Market Integration, Risk-Taking, and Income Inequality

Ron Kaniel , Yizhou Xiao Lin William Cong (叢林)   Dec 30,2023

Working Paper No.00136-00

A pandemic or nationalism can dial back global integration as much as advancements in IT and transportation spur it. We... Read More

A Theory of Liquidity Spillover Between Bond and CDS Markets

Batchimeg Sambalaibat   Jul 07,2021

Working Paper No.00072-00

I build a search model of bond and credit default swap (CDS) markets with endogenous investor participation and show that... Read More

A Theory of Participation in OTC and Centralized Markets

Jerome Dugast, Pierre-Olivier Weill , Semih Uslu   Sep 29,2021

Working Paper No.00052-02

Should regulators encourage the migration of trade from over-the-counter (OTC) to centralized markets? To address this question, we study a... Read More

Published: Review of Economic Studies, 2022, 89(6), 3223-3266

Aggregation and Design of Information in Markets with Adverse Selection

Brett Green , William Fuchs , Vladimir Asriyan   Nov 05,2019

Working Paper No.00032-01

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

Published: Journal of Economic Theory, 2021, (), -

The Good, the Bad, and the Complex: Product Design with Imperfect Information

Dana Foarta, Vladimir Asriyan Victoria Vanasco   Nov 05,2019

Working Paper No.00053-00

We study the joint determination of product quality and complexity in a rational setting. We introduce a novel notion of... Read More

Published: AEJ-Micro, 2023, 15(2), 187-226