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trader can walk away from a proposed trade when he learns the trading price. We show that when one trader's information is …
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Biographical note: DuffieDarrell: Darrell Duffie is the Dean Witter Distinguished Professor of Finance at Stanford University's Graduate School of Business. His books include "How Big Banks Fail and What to Do about It" and "Dynamic Asset Pricing Theory" (both Princeton).
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I study a persuasion game between a privately informed agent and a decision maker (DM) who can imperfectly verify the statements made by the agent by observing a signal that is correlated with the agent's information. I find that whether or not the DM benefits from communicating with the agent...
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-the-Counter Markets -- 1.1 Bilateral Negotiation of Terms -- 1.2 OTC Transparency -- 1.3 Why Trade Over the Counter? -- 1.4 Managing OTC … Credit Risk -- 1.5 Price Behavior with Search Frictions -- 2 The Case of Federal Funds Lending -- 2.1 The Federal Funds … Literature -- 4 A Simple OTC Pricing Model -- 4.1 Basic Risk-Neutral OTC Pricing Model -- 4.2 Bargaining over the Price -- 4 …
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