"We analyze the equilibrium size of the active management industry and the role of historical data--how investors use it to decide how much to invest in the industry, and how researchers use it to judge whether the industry's size is reasonable. As the industry's size increases, every manager's...

The unique capital structure of commercial banking - funding production with demandable debt that participates in the economyś payments system - affects various aspects of banking. It shapes banks ́comparative advantage in providing financial products and services to informationally opaque...

In the context of increasing returns markets, the conventional argument is that a slender market share advantage may entrain a firm on a trajectory bound for monopoly in the long run. We revisit this with the linear urn model representation of history dependence, and a probabilistic...