We solve for the equilibrium dynamics of information sharing in a large pop-ulation. Each agent is endowed with signals regarding the likely outcome of arandom variable of common concern. Individuals choose the effort with whichthey search for others from whom they can gather additional...

We present a model for the equilibrium movement of capital between markets.Two markets with symmetrically distributed risks are distinguished only by the levelsof capital invested in the two markets. That market with the greater amount of capitalearns lower conditional mean returns....

In OTC bond markets many investors face high costs of trade, and these costs appear to berelated to the lack of price transparency. We study the consequences this has for efficient pricediscovery. Prices of municipal bonds react sluggishly to macroeconomic news. Yield spreads overtreasuries...