Philippe Jehiel : « Bundlers’ dilemmas in financial markets with sampling investors » (Theoretical Economics)
Bundlers’ dilemmas in financial markets with sampling investors. Milo Bianchi, Philippe Jehiel. Theoretical Economics. 15 (2). 05/2020. 545-582 We study banks’ incentive to pool assets of heterogeneous quality when investors evaluate pools by extrapolating from limited sampling. Pooling assets of heterogeneous quality induces dispersion in investors’ valuations without affecting their average. Prices are determined by […]