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We consider competition among n sellers when each of them sells a portfolio of distinct products to a buyer having … limited slots (or shelf space). We study how bundling affects competition for slots. When the buyer has k number of slots …, equilibrium often does not exist and hence the outcome is often inefficient. Bundling changes competition between individual …
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The London Interbank Offered Rate (Libor) is a set of vital benchmark interest rates to which hundreds of trillions of dollars of financial contracts are tied. The rates are set each day via a survey of large banks. In recent years, strange behavior of the rates have caused observers to question...
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This paper investigates how a profit-maximizing asset originator can coordinate the information acquisition of investors with different expertise by means of asset bundling. Bundling is beneficial to the originator when it discourages investors from analyzing idiosyncratic risks and focuses...
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As an illustrative example of a trading strategy, we consider in detail an investment strategy, titled “The Bounce Basket”, designed for someone to express a bullish view on the market by allowing them to take long positions on securities that would benefit the most from a rally in the...
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