Frictional asset reallocation under adverse selection

Asset Reallocation in Bankruptcy

This paper investigates the consequences of Chapter 7 liquidation and Chapter 11 reorganization on the reallocation and subsequent utilization of assets in bankruptcy. We identify 129,000 bankrupt establishments and construct a novel dataset that tracks the occupancy and utilization of real estate assets over time. Asset reallocation is widespread, as nearly 80% of real estate is not occupied b...

Liquidity in Frictional Asset Markets

Dynamic contracting under adverse selection and renegotiation

We study an in…nitely repeated principal-agent model with adverse selection and renegotiation. The model is suitable for studying procurement, labor market relationships, and monopoly pricing, which is our main interpretation. A monopolist faces a consumer who has private information regarding his preferences for quality. The monopolist can o¤er long-term contracts, promising to deliver a certa...

Adverse Selection Under Ambiguity∗ Job Market Paper

This paper analyses a bilateral trade problem with asymmetric information and ambiguity aversion. There is a buyer and a seller who bargain over the exchange of an indivisible good. The seller is privately informed about the quality of the good, which determines both his valuation and the buyer’s valuation. In the absence of ambiguity, the contract that maximizes the buyer’s payoff is a posted ...

Price dispersion under the Adverse Selection Environment

The price dispersion means different prices for same goods. In the Internet economy, many economists reckon that the price dispersion in the e-commerce markets should descend along with the dropping of search cost. However, the correlative empirical studies reach a contrary opinion: there not only exist price dispersion in the e-commerce market, but also has larger dispersion degree than the tr...