We study pricing dynamics and risk-sharing in a market with rational investors and a Q-learning trader. The Q-learner's trading generates a feedback loop in prices: their demand for the risky security depends on their perceived benefit from trading, which in turn, depends on realized returns. We show that this loop generates state-dependent stochastic volatility, predictable returns, and novel price dynamics which depend on the mass...

We study the disclosure policy of a regulator overseeing a monitor with reputation
concerns, such as a bank or an auditor. The monitor oversees a manager, who chooses
how much to manipulate given the monitor's reputation. Reputational incentives are
strongest for intermediate reputations and uncertainty about the monitor is valuable.
Instead of providing transparency, the regulator's disclosure keeps the monitor's reputation