We study investment options in a dynamic agency model. Moral hazard creates anoption to wait and agency conflicts affect the timing of investment. The model shedslight, theoretically and quantitatively, on the evolution of firms dynamics, in particular the decline of the failure rate and the...

This paper studies predatory trading: trading that induces and/or exploits other investors s need to reduce their positions. We show that if one trader needs to sell, others also sell and subsequently buy back the asset. This leads to price overshooting and a reduced liquidation value for the...

This paper studies predatory trading: trading that induces and/or exploits other investors need to reduce their positions. We show that if one trader needs to sell, others also sell and subsequently buy back the asset. This leads to price overshooting and a reduced liquidation value for the...

We provide a model that links a security's market liquidity - i.e., the ease of trading it - and traders' funding liquidity - i.e., their availability of funds. Traders provide market liquidity and their ability to do so depends on their funding, that is, their capital and the margins charged by...