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We model the behavior of dealers in Over-the-Counter (OTC) derivatives markets where a small number of dealers trade with a continuum of heterogeneous clients (hedgers). Imperfect competition and (endogenous) default induce a familiar trade-off between competition and risk. Increasing the number...
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In the United States today, the system of financial regulation is complex and fragmented. Responsibility to regulate …
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actors, be they individuals or institutions not permitted to contribute to financial market regulation as a public good. As … that arise between various interests and how these are managed within the process of regulation …
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