In the context of decentralized portfolio optimization, understanding how to distribute a fixed budget among decentralized intermediaries is a relevant investment problem, that has been recently introduced in the mathematical economics literature. While existing contributions focus on incentive...

I derive practical formulas for optimal arrangements between sophisticated stock market investors (continuous-time Kelly gamblers or, more generally, CRRA investors) and the brokers who lend them cash for leveraged bets on a high Sharpe asset (i.e., the market portfolio). Rather than, say, the...

We develop a macroeconomic framework in which firms are large and have market power with respect to both products and labor. Each firm maximizes a share-weighted average of shareholder utilities, which makes the equilibrium independent of price normalization. In a one-sector economy, if returns...