Papers
Uploaded: Aug 4, 2025
Investment Sophistication and Wealth Inequality
I study the equilibrium behavior of wealth distribution in a dynamic model of financial markets with multiple groups of rational investors who may differ in their information sets, as well as a group of irrational investors with incorrect beliefs. The...
Uploaded: Aug 4, 2025
Running Responsibly
Prosocial banks avoided panic runs despite weak fundamentals. We show that socially responsible investments deter panic runs in any global game with nonrival public goods, even if every depositor is atomistic, rational, and selfish. We study financial and social impacts...
Uploaded: Aug 4, 2025
Firms as Electoral Monopsonies
We study how dominant employers can act as electoral monopsonies, directly shaping electoral outcomes by leveraging local labor market power. We consider a model where a dominant employer can reshape the political preferences of the local electorate by conditioning their...
Uploaded: Aug 4, 2025
Demand Elasticity in Dynamic Asset Pricing
We show that the standard econometric approach relying on exogenous residual supply shocks systematically underestimates the slope of investors' asset demand curves in dynamic settings. We develop a multi-asset, multi-agent continuous-time model featuring long-lived investors and short-lived hedgers whose demand...
Uploaded: Aug 4, 2025
Probability Pricing
This paper extends traditional cash-flow pricing to analyze the willingness-to-pay for changes in probabilities, that is, probability pricing. We show that an agent’s willingness-to-pay for an arbitrary probability perturbation can be expressed as a cash-flow pricing formula for hypothetical cash...
Uploaded: Aug 4, 2025
Exploitation Payoffs and Incentives for Exploration
We study a dynamic moral hazard problem involving initial exploration followed by exploitation, merging experimentation with dynamic corporate finance. We show how the methods and conclusions of the experimentation literature change when considering the exploitation phase’s non-monotonic payoff structure that...
