Similar Search Results

Weyl, E. Glen - 2012

arbitrage or financial innovation arise from mispricings caused by the presence of confused investors or other distortions, such … market-making is harmful. Rather than arbitrage facilitating the flow of risk to those who can most efficiently bear it, this … harmful arbitrage allocates risk to those who least understand it. The beneficial effects of efficient pricing on real …

Persistent link: https://www.econbiz.de/10014211563

An experimental comparison of two exchange economies : long-lived asset vs. short-lived asset

Carbone, Enrica; Hey, John Denis; Neugebauer, Tibor - In: Management science : journal of the Institute for … 67 (2021) 11, pp. 6946-6962

Persistent link: https://www.econbiz.de/10012703757

An experimental comparison of two exchange economies : long-lived asset versus short-lived asset

Carbone, Enrica; Hey, John Denis; Neugebauer, Tibor - 2020

The Lucas (1978) Tree Model lies at the heart of modern macro-finance. At its core, it provides an analysis of the equilibrium price of a long-lived asset in an exchange economy where consumption is the objective, and the sole purpose of the asset is to smooth consumption through time....

Persistent link: https://www.econbiz.de/10012322400

An experimental comparison of two exchange mechanisms : an asset market versus a credit market

Carbone, Enrica; Hey, John Denis; Neugebauer, Tibor - 2018

Persistent link: https://www.econbiz.de/10011898821

Slow Arbitrage

Blatt, Julien - 2018

This paper develops a dynamic model in which financially constrained agents search for markets which are subject to decreasing returns to scale. In equilibrium, agents only invest in markets with total capital below an endogenous threshold that depends on the equilibrium distribution of capital...

Persistent link: https://www.econbiz.de/10012915373

Bankruptcy in General Equilibrium

Sabarwal, Tarun - 2019

In this paper, I construct a model of an exchange economy in which bankruptcy arises in a manner similar to what we observe. This model is a more realistic representation of some markets in which intertemporal assets are traded. Using standard and natural assumptions, I show that every economy...

Persistent link: https://www.econbiz.de/10012889092