Papers

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Aggregation and Design of Information in Markets with Adverse Selection

Brett Green , William Fuchs , Vladimir Asriyan   Nov 05,2019

Working Paper No.00032-01

How effectively does a decentralized marketplace aggregate information that is dispersed throughout the economy? We study this question in a... Read More

Published: Journal of Economic Theory, 2021, (), -

Collateral Booms and Information Depletion

Luc Laeven,Alberto Martin, Vladimir Asriyan   Nov 05,2019

Working Paper No.00054-00

We develop a new theory of information production during credit booms. Entrepreneurs need credit to undertake investment projects, some of... Read More

Published: Review of Economic Studies, 2021, (), -

Tragedy of Complexity

Martin Oehmke , Adam Zawadowski   Nov 18,2019

Working Paper No.00055-00

This paper presents an equilibrium theory of product complexity. Complex products generate higher potential value, but require more attention from... Read More

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

Optimal Short-Termism

Alejandro Rivera, Tak-Yuen Wong, Alejandro Rivera, Tak-Yuen Wong, Dirk Hackbarth   Jan 14,2018

Working Paper No.00020-00

This paper studies incentives in a dynamic contracting framework of a levered firm. In particular, the manager selects long-term and... Read More

Learning in Crowded Markets

Peter Kondor , Adam Zawadowski   Mar 12,2018

Working Paper No.00031-00

We study a capital reallocation problem in which  investors can enter into a new market where they compete with each other... Read More

Optimal Contracting and the Organization of Knowledge

luis garicano,luis rayo, William Fuchs   Jul 30,2018

Working Paper No.00042-09

We study contractual arrangements that support an efficient use of time in a knowledge- intensive economy in which agents... Read More

The Market for Conflicted Advice

Briana Chang , Martin Szydlowski   Sep 21,2018

Working Paper No.00046-00

We present a model of the market for advice in which advisers have conflicts of interest and compete for... Read More

Compensation in High Finance: A Theory of Periodic Labor Markets and Guaranteed Bonuses

Brian Waters , Edward Van Wesep   Dec 17,2018

Working Paper No.00048-00

We present a general equilibrium model of labor market ows that features a periodic equilibrium in which turnover is high... Read More

Risk Preferences and the Macro Announcement Premium

Ravi Bansal, Ravi Bansal, Hengjie Ai   Jan 06,2017

Working Paper No.00009-00

The paper develops a theory for equity premium around macroeconomic announcements. Stock returns realized around pre-scheduled macroeconomic announcements, such as... Read More