FMG

To evaluate a bank’s resilience to financial stress, authorities often rely on private information from a peer institution, or counterparty. This...

Complexity can create value. At the same time, understanding more complex goods requires more of an agent’s attention. We show that equilibrium...

We derive option-implied bounds on the probability of a crash in an individual stock, and argue a priori that the lower bound should be close to the...

The rapid adoption of artificial intelligence (AI) poses new and poorly understood threats to financial stability. We use a game-theoretic model to...