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A recent theory by Gennaioli, Shleifer, and Vishny (2015) proposes that trust is an important component for delegated … investing. This paper tests the theory in a laboratory experiment. Participants first play a trust game. Participants then act …
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We study an optimal liquidation problem under the ambiguity with respect to price impact parameters. Our main results show that the value function and the optimal trading strategy can be characterized by the solution to a semi-linear PDE with superlinear gradient, monotone generator and singular...
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strong preferences for time liquidity diversification, provide challenges for TGPF managers to increase their financial …
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