Hull, Isaiah - In: Quantitative economics : QE ; journal of the … 7 (2016) 2, pp. 613-636
I study financial product innovation in a model with two classes of agents: “sophisticated” and “unsophisticated … competitors who have already adopted them. The model yields two equilibria: in one, the innovation persists; in the other, it … innovation literature. Additionally, two applications demonstrate how to estimate the contagion parameter with a short time …