The gold spot price is fixed by four banks every day at 10:30 am and 3 pm London time. This document describes a role-play simulation that replicates core features of the London gold fixing with the aim to better understand the incentives and the behaviour of the fixing participants. The game is...

This paper proposes that bank runs are unique equilibrium outcomes instead of self-fulfilling prophecies. By assuming that depositors make their withdrawal decisions sequentially, the model provides an equilibrium-selection mechanism in the economy. A bank run would occur if and only if...

This paper studies how short-sale constraints affect the informational efficiency of market prices and the link between prices and real economic activity. I show that under short-sale constraints security prices contain less information. However, short-sale constraints increase the...

Companies collected billions in premiums from peculiarly structured put options written on their own stock, while almost all of these puts expired worthless quarter after quarter. Buyers of these options, primarily investment banks, lost money as a result. Although these losses might seem...

The present paper, following the philosophical work of Robert Nozick, intends to develop the approach of simplicity in the economic investigation. This purpose contributes to structure a heuristic for projects of investigation that can serve like mark of discussion of grade projects in the...

The credit rating industry has historically been dominated by just two agencies, Moody's and Samp;P, leading to longstanding legislative and regulatory calls for increased competition. The material entry of a third rating agency (Fitch) to the competitive landscape offers a unique experiment to...

We study the problem of going public in the presence of moral hazard, adverse selection and multiple trading periods. In the multiperiod game managers strategically choose the level of extraction of private benefits and can develop a good reputation for expropriating low levels of private...

Hidden orders are widely used in major exchanges. This paper studies how hidden orders affect markets by introducing these orders to the limit order market model in Foucault et al. (2005). We investigate the equilibrium outcomes in an infinite-time horizon model with multiple price levels and...

The credit rating industry has historically been dominated by just two agencies, Moody’s and S&P, leading to longstanding legislative and regulatory calls for increased competition. The material entry of a third rating agency (Fitch) to the competitive landscape offers a unique experiment to...

This paper aims to explore the relevance of the Theory of Argumentation TA in the complex area of financial reporting. Specifically, we investigated the scope of the phenomenon of persuasion in advertising. It examines advertisements in publications notable economic movement in Colombia. The...