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This paper derives necessary and sufficient conditions for the existence of linear equilibria in the Rochet-Vila model of market making. In contrast to most previous work on the existence of linear equilibria in models of market making, we do not impose independence of the underlying random...
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) in the context of herding.-- information cascades ; herding ; network effects ; experiment ; internet … effects, first-mover advantage, etc.) in a standard information-based herding model. Our results are based on an internet … experiment with more than 6000 subjects, including a subsample of 267 consultants from an international consulting firm. We also …
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