Vayanos, Dimitri; Weill, Pierre-Olivier - London School of Economics (LSE) - 2005
that they must deliver the asset they borrowed. As a result, that asset enjoys both greater liquidity, measured by search … through search. Short-sellers can endogenously concentrate in one asset because of search externalities and the constraint … infinite-horizon, steady-state market to establish long or short positions. Both the spot and the asset-lending market operate …