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Disagreement in Collateral Valuation

Michael Woeppel, Jordan Martel   Aug 03,2023

Working Paper No.00124-00

We present a model of secured lending in which borrowers and lenders agree to disagree about collateral values. Lenders' beliefs... 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

Trust in Signals and the Origins of Disagreement

Alice Hsiaw, Ing-Haw Cheng   Nov 14,2022

Working Paper No.00047-01

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

Demand Disagreement

Christian Heyerdahl-Larsen, Philipp Illeditsch   Dec 13,2019

Working Paper No.00058-00

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