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Tragedy of Complexity

Martin Oehmke , Adam Zawadowski   Mar 22,2025

Working Paper No.00055-01

Complexity can create value. At the same time, understanding more complex goods requires more of an agent’s attention. We show... Read More

Optimal Integration: Human, Machine, and Generative AI

Hongda Zhong   Jan 18,2025

Working Paper No.00146-00

I study the optimal integration of humans and technologies in multi-layered decision-making processes. Each layer can correct existing errors but... Read More

Dynamic Coordination and Bankruptcy Regulations

Zhen Zhou, Hongda Zhong   Jan 18,2025

Working Paper No.00147-00

Many regulations aim at promoting coordination among creditors in bankruptcy by ex post restricting their ability to exit distressed firms.... Read More

Dynamic Coordination and Bankruptcy Regulations

Zhen Zhou, Hongda Zhong   Jan 18,2025

Working Paper No.00147-00

Many regulations aim at promoting coordination among creditors in bankruptcy by ex post restricting their ability to exit distressed firms.... Read More

Comparing Search and Intermediation Frictions Across Fixed-Income Markets

Gabor Pinter,Jean-Charles Wijnandts, Semih Uslu   Apr 30,2025

Working Paper No.00150-00

We develop a two-asset search-and-bargaining model of OTC trading to estimate frictions and welfare losses in the UK government and... Read More

A Theory of Corporate Communication

Jordan Martel   May 01,2025

Working Paper No.00151-00

How should we expect firms to communicate with their shareholders in the presence of uncertainty? This paper studies a model... Read More

The Quiet Hand of Regulation: Harnessing Uncertainty and Disagreement

Lorenzo Garlappi , Daniel Andrei   May 12,2025

Working Paper No.00152-00

Regulating externalities is particularly challenging in the presence of uncertainty and disagreement among economic agents. Traditional Pigouvian and Coasean approaches... Read More

The Quiet Hand of Regulation: Harnessing Uncertainty and Disagreement

Lorenzo Garlappi , Daniel Andrei   May 12,2025

Working Paper No.00152-00

Regulating externalities is particularly challenging in the presence of uncertainty and disagreement among economic agents. Traditional Pigouvian and Coasean approaches... Read More

The Quiet Hand of Regulation: Harnessing Uncertainty and Disagreement

Lorenzo Garlappi , Daniel Andrei   May 12,2025

Working Paper No.00152-00

Regulating externalities is particularly challenging in the presence of uncertainty and disagreement among economic agents. Traditional Pigouvian and Coasean approaches... Read More

The Evolution of the Market for Corporate Control

Samuel Lee, Mike Burkart , Paul Voss   Feb 02,2024

Working Paper No.00137-00

In a canonical takeover model we let an informed large shareholder choose between making a bid or initiating a sale... Read More