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Payments and privacy in the digital economy

Peter Hoffmann,Cyril Monnet, Toni Ahnert   Mar 02,2024

Working Paper No.00139-00

We propose a model of financial intermediation, payments choice, and privacy in the digital economy. While digital payments enable merchants to sell... Read More

Competition and Information Leakage

Markus Baldauf Joshua Mollner   May 17,2024

Working Paper No.00096-01

When seeking to trade in over-the-counter markets, institutional investors typically restrict both the number of potential counterparties they contact and... Read More

Published: Journal of Political Economy, 2024, 132(5), 1603-1641

Block Trade Contracting

christoph frei, Markus Baldauf Joshua Mollner   Jun 12,2024

Working Paper No.00095-02

We study the optimal execution problem in a principal-agent setting. A client contracts to purchase from a dealer. The dealer... Read More

Published: Journal of Financial Economics, 2024, 160(), 103901-

Information Cascades and Social Learning

Sushil Bikhchandani,omer tamuz,ivo welch, David Hirshleifer   Jul 11,2023

Working Paper No.00104-00

We review the theory of information cascades and social learning. Our goal is to describe in a relatively integrated and... Read More

Screening with Securities

Nicolas Figueroa, Nicolas Inostroza   Apr 26,2023

Working Paper No.00097-00

A liquidity-constrained asset owner designs an asset-backed security to raise funds from an informed liquidity supplier. Information insensitive securities reduce... Read More

Persuading Multiple Audiences: Strategic Complementarities and (Robust) Regulatory Disclosures

Nicolas Inostroza   Apr 26,2023

Working Paper No.00098-00

How much information about financial institutions' balance sheets should regulators pass on to the market? To minimize the probability of... Read More

Optimal Information and Security Design

Anton Tsoy , Nicolas Inostroza   Jul 11,2023

Working Paper No.00105-00

An asset owner designs an asset-backed security and a signal about its value. After privately observing the signal, he sells... Read More

Short-term debt overhang

Kostas Koufopoulos (York), Pavel Zryumov , Giulio Trigilia   Jul 11,2023

Working Paper No.00106-00

We show that short-term debt in a firm’s optimal capital structure reduces investment under asymmetric information. Investors’ interpretation of underinvestment... Read More

Information acquisition and mutual funds

Joel M. Vanden, Diego Garcia   Aug 02,2023

Working Paper No.00114-00

We study the size and the existence of the mutual fund industry by generalizing the standard competitive noisy rational expectations... Read More

Relative wealth concerns and complementarities in information acquisition

Günter Strobl , Diego Garcia   Aug 02,2023

Working Paper No.00115-00

This paper studies how relative consumption effects, in which a person's satisfaction with their own consumption depends on how much... Read More