Johan Hombert, Bruno Biais , Pierre-Olivier Weill Mar 29,2021
Incentive problems make securities’ payoffs imperfectly pledgeable, limiting agents’ ability to issue liabilities. We analyze the equilibrium consequences of such... Read More
Ana Babus , Cecilia Parlatore Apr 30,20210
We study the determinants of asset market fragmentation in a model with strategic investors that disagree about the value of... Read More
Batchimeg Sambalaibat Jul 07,2021
We build a directed search model of network formation. We propose that a core-periphery interdealer network arises from dealer specialization. Read More
Batchimeg Sambalaibat Jul 07,2021
I build a search model of bond and credit default swap (CDS) markets with endogenous investor participation and show that... Read More
Qing Liu, Lucy White , Andrea Buffa Sep 15,2021
Most of the literature on organizational design and incentives assumes public contracting. Yet most real world compensation contracts are private... Read More
Jerome Dugast, Pierre-Olivier Weill , Semih Uslu Sep 29,2021
Should regulators encourage the migration of trade from over-the-counter (OTC) to centralized markets? To address this question, we study a... Read More
Christian Opp Vincent Glode Nov 02,2021
We propose a model of strategic debt renegotiation in which businesses are sequentially interconnected through their liabilities. This financing structure,... Read More
Basil Williams Yaron Leitner Nov 17,20210
Should regulators reveal the models they use to stress test banks? In our setting, revealing leads to gaming, but secrecy... Read More
Ivan Marinovic , Martin Szydlowski Sep 22,2020
We study the disclosure policy of a regulator overseeing a monitor with reputation concerns, such as a bank or... Read More
Efstathios Avdis Oct 08,2020
Long-held intuition dictates that information-based trade is impossible without exogenous noise. Risk seekers can resolve this conundrum. Even though such... Read More