This Paper analyses the effect of a possible takeover on information flows and on the terms of trade in business …

positions, a large fraction of these funds actually acted as net sellers consistent with the view that information barriers …-to-market losses. Our findings suggest that real world frictions impede arbitrage capital. …

distribution into three main components: efficiency, amenities, and frictions. Higher efficiency and better amenities lead to … larger cities, but also to greater frictions through congestion and other negative effects of agglomeration. Using data on … MSAs in the United States, we parametrize the model and empirically estimate efficiency, amenities and frictions …

sometimes sold above, sometimes below and sometimes at the asking price. We consider two versions of our model. In the first … information. For both versions, we characterize the equilibrium of the game played by buyers and sellers, and we prove efficiency … to the directed search literature by considering a model in which the asking price (i) entails only limited commitment …

-productivity sector can then be realized with fewer applications (and consequently fewer coordination frictions) if workers always accept …

attract the other side. We show that if the first-price auction is adopted as the trading protocol, then cheap talk can be … perfectly informative, and the resulting market outcome is efficient, constrained only by search frictions. We also show that … the performance of an alternative trading protocol in the cheap-talk environment depends on the level of price dispersion …