Stock Market Tournaments

We propose a new theory of suboptimal risk-taking based on contractual externalities. We examine an industry with a continuum of firms. Each firm’s...

DP 706

Making Europe Safer

Open letter by the international Euro-nomics academic group (www.euro-nomics.com), composed of Markus Brunnermeier, Luis Garicano, Philip R. Lane...

CDS Auctions

We analyze credit default swap settlement auctions theoretically and evaluate them empirically. In our theoretical analysis, we show that the current...

DP 688

Complicated Firms

We exploit a novel setting in which the same piece of information affects two sets of firms: one set of firms requires straightforward processing to...

DP 683