Papers
Blockchain Adoption in a Supply Chain with Manufacturer Market Power
Published: Management Science, 2024
We examine a supply chain with a single risk-averse manufacturer who purchases from suppliers and sells to consumers. Within this context, we focus on two channels that drive blockchain adoption by the manufacturer: manufacturer risk aversion and consumer information asymmetry....
Contracting with a Present-Biased Agent: Sannikov meets Laibson
Uploaded: Sep 27, 2023
This paper develops a methodology to solve dynamic principal-agent problems in which the agent features present-biased time preferences and naive beliefs. There are three insights. First, the problem has a recursive representation using the agent's perceived continuation value as a...
Designing Stress Scenarios
Published: Journal of Finance, 2025
We study the optimal design of stress scenarios. A principal manages the unknown risk exposures of agents by asking them to report losses under hypothetical scenarios before taking remedial actions. We apply a Kalman filter to solve the learning problem and we...
Economic Growth through Diversity in Beliefs
Uploaded: Aug 20, 2023
We study a macro-finance model with entrepreneurs who have diverse views about the likelihood that their ideas will lead to successful innovations. These views and the resulting experimentation stimulate economic growth and overcome market failures that would otherwise occur in...
What type of transparency in OTC markets?
Uploaded: Aug 11, 2023
Financial over-the-counter markets have been traditionally very opaque. Recent regulation promotes transparency in some of these markets by lowering search costs, allowing traders to request quotes from multiple dealers at the same time (pre-trade transparency), and requiring public disclosure of...
Disagreement in Collateral Valuation
Uploaded: Aug 3, 2023
We present a model of secured lending in which borrowers and lenders agree to disagree about collateral values. Lenders' beliefs distort equilibrium prices of collateralized assets, and the extent to which lenders' beliefs distort prices is mediated by borrower riskiness....
