We model the online software market in which an intermediary connects sellers and buyers by displaying products on its website. When products are vertically differentiated, an intermediary uses two webpages: one product, not necessarily better, is shown on the first page, and the other is hidden...

We study how the trade-off between liquidity provision and value preservation shapes redemption rules for financial intermediaries. In the literature, a bank prioritizes liquidity provision in a run by selling all assets. In reality, default followed by a mandatory stay on payments is triggered...

We model a market, such as an online software market, in which an intermediary connects sellers and buyers by displaying sellers' products. With two vertically-differentiated products, an intermediary can place either: (1) one product, not necessarily the better one, on the first page, and the...

Until the recent financial crisis, the safety and soundness of financial institutions was assessed from the perspective of the individual institution. The financial crisis highlighted the need to take systemic externalities seriously when rethinking prudential oversight and the regulatory...

Can the risk of losses upon premature liquidation produce bank runs? We show how a unique run equilibrium driven by asset liquidity risk arises even under minimal fundamental risk. To study the role of illiquidity we introduce realistic norms on bank default, such that mandatory stay is...

This paper provides evidence of the effect of age at school entry on college admission. We do so by exploiting a number of features in the application process to one of the major flagship universities in Brazil. By comparing applicants with different ages at school entry depending on whether...