Papers

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Information acquisition and mutual funds

Joel M. Vanden, Diego Garcia   Aug 02,2023

Working Paper No.00114-00

We study the size and the existence of the mutual fund industry by generalizing the standard competitive noisy rational expectations... Read More

Relative wealth concerns and complementarities in information acquisition

Günter Strobl , Diego Garcia   Aug 02,2023

Working Paper No.00115-00

This paper studies how relative consumption effects, in which a person's satisfaction with their own consumption depends on how much... Read More

Information sales and strategic trading

Francesco Sangiorgi , Diego Garcia   Aug 02,2023

Working Paper No.00116-00

We study information sales in financial markets with strategic risk-averse traders. Our main result establishes that the optimal selling mechanism... Read More

Asymmetric information, security design, and the pecking (dis)order

Dirk Hackbarth, Paolo Fulghieri , Diego Garcia   Aug 02,2023

Working Paper No.00117-00

We study a security design problem under asymmetric information, in the spirit of Myers and Majluf (1984). We introduce a... Read More

The Equilibrium Consequences of Indexing

Philip Bond , Diego Garcia   Aug 02,2023

Working Paper No.00118-00

We develop a benchmark model to study the equilibrium consequences of indexing in a standard rational expectations setting. Individuals incur... Read More

Optimal contracts with privately informed agents and active principals

Diego Garcia   Aug 02,2023

Working Paper No.00119-00

This paper considers an optimal contracting problem between an informed risk-averse agent and a principal, when the agent needs to... Read More

Noise and aggregation of information in large markets

Branko Urosevic, Diego Garcia   Aug 02,2023

Working Paper No.00120-00

We study a novel class of noisy rational expectations equilibria in markets with large number of agents. We show that,... Read More

Smooth versus Harsh Regulatory Interventions and Policy Equivalence

Linda Schilling   Aug 03,2023

Working Paper No.00123-00

Policy makers have developed different forms of policy intervention for stopping, or preventing runs on financial firms. This paper... Read More

What type of transparency in OTC markets?

Maren Vairo, Piotr Dworczak   Aug 11,2023

Working Paper No.00125-00

Financial over-the-counter markets have been traditionally very opaque. Recent regulation promotes transparency in some of these markets by lowering search... Read More

Designing Stress Scenarios

Thomas Philippon, Cecilia Parlatore   Sep 25,2023

Working Paper No.00074-01

We study the optimal design of stress scenarios. A principal manages the unknown risk exposures of agents by asking them to... Read More