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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

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-

The Rise of Factor Investing: Asset Market Implications and "Passive" Security Design

Douglas Xu, Shiyang Huang Lin William Cong (叢林)   Nov 21,2024

Working Paper No.00133-01

We model financial innovations such as Exchange-Traded Funds, smart beta products, and many index-based vehicles as composite securities (CSs) that... 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

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

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

Information sales and strategic trading

Francesco Sangiorgi , Diego Garcia   Aug 02,2023

Working Paper No.00116-00

We study information sales in financial markets with strategic risk-averse traders. Our main result establishes that the optimal selling mechanism... Read More

The Equilibrium Consequences of Indexing

Philip Bond , Diego Garcia   Aug 02,2023

Working Paper No.00118-00

We develop a benchmark model to study the equilibrium consequences of indexing in a standard rational expectations setting. Individuals incur... Read More

Noise and aggregation of information in large markets

Branko Urosevic, Diego Garcia   Aug 02,2023

Working Paper No.00120-00

We study a novel class of noisy rational expectations equilibria in markets with large number of agents. We show that,... Read More