Areas of Expertise
Corporate Finance
Financial Contracting
Information Frictions In Financial Markets
Featured Work
Due Diligence
Jun 1, 2026
Brendan Daley, Thomas Geelen, Brett Green
Due diligence is common practice prior to the execution of large transactions. We propose a model of due diligence and analyze its effect on prices, payoffs, and deal completion. In our model, if the seller accepts an offer, the acquirer has the right to gather information and chooses when to execute the transaction. In equilibrium, the acquirer engages in “too much” due diligence. Our quantitative...
Stock ups, Stockouts, and the Role for Strategic Reserves
Apr 7, 2026
At the height of the Covid-19 pandemic, consumers stockpiled common household items in expectation of shortages and rising prices. In this paper, we explore the interaction of consumer stockpiling with monopoly pricing in the face of a supply disruption. If consumers can store the good, then they purchase stockpiles in anticipation of a price hike. This causes the firm to raise the price sooner in...
Bargaining and News
Nov 1, 2025
Brendan Daley, Brett Green
We study a bargaining model in which a buyer makes frequent offers to a privately informed seller, while gradually learning about the seller’s type from “news.” We show that the buyer’s ability to leverage this information to extract more surplus from the seller is remarkably limited. In fact, the buyer gains nothing from the ability to negotiate a better price despite the fact that a...
Securitization, Ratings, and Credit Supply
Nov 1, 2025
Brendan Daley, Brett Green, Victoria Vanasco
We show that the availability of credit ratings (or other public information) increases the allocative efficiency of cash flows by reducing costly retention, but reduces lending standards and can lead to an oversupply of credit. These findings are in contrast to regulators' view of credit ratings as a "disciplining device." Moreover, improved screening does not solve the problem; as banks' screening technology becomes more precise,...
