James Dow , Jungsuk Han Francesco Sangiorgi Jun 24,2024
Working Paper No.00140-00
Will arbitrage capital flow into markets experiencing shocks, mitigating adverse effects on price efficiency? Not necessarily. In a dynamic model... Read More
Zhiqiang Ye, Xavier Vives Aug 01,2024
Working Paper No.00141-00
We study fintech entry and how it affects competition, investment, and welfare in a spatial model. We find that fintechs... Read More
Joel Hasbrouck,Thomas Rivera, Fahad Saleh Jul 10,2023
Working Paper No.00080-01
We demonstrate that increasing trading fees at a decentralized exchange (DEX) can increase DEX trading volume. This result arises due... Read More
Kostas Koufopoulos (York), Pavel Zryumov , Giulio Trigilia Jul 11,2023
Working Paper No.00106-00
We show that short-term debt in a firm’s optimal capital structure reduces investment under asymmetric information. Investors’ interpretation of underinvestment... Read More
Jason Allen, Milena Wittwer Jul 18,2023
Working Paper No.00109-00
In traditional over-the-counter markets, investors trade bilaterally through intermediaries. We assess whether and how to shift trades on a centralized... Read More
Branko Urosevic, Francesco Sangiorgi , Diego Garcia Aug 02,2023
Working Paper No.00121-00
We study financial markets in which both rational and overconfident agents coexist and make endogenous information acquisition decisions. We demonstrate... Read More
Christian Heyerdahl-Larsen,Howard Kung, Philipp Illeditsch Aug 20,2023
Working Paper No.00126-00
We study a macro-finance model with entrepreneurs who have diverse views about the likelihood that their ideas will lead to... Read More
Gabor Pinter, Semih Uslu Aug 26,2023
Working Paper No.00127-00
In intermediated markets, trading takes time and intermediaries extract rents. We estimate a structural search-and-bargaining model to quantify these trading... Read More
Giovanni Cespa, Xavier Vives Dec 04,2023
Working Paper No.00131-00
We show that, consistent with empirical evidence, access to order flow information allows traders to supply liquidity via contrarian marketable... Read More
Thierry Foucault,Stefano Lovo, Jean-Edouard Colliard Oct 27,2022
Working Paper No.00081-00
We let “Algorithmic Market-Makers” (AMMs), using Q-learning algorithms, choose prices for a risky asset when their clients are privately informed... Read More