I introduce the concept of hybrid intermediaries: financial conglomerates that control a multiplicity of entity types active in the “assembly line” process of modern financial intermediation, a system that has become known as shadow banking. The complex bank holding companies of today are the best example of hybrid intermediaries, but I argue that financial firms from the “nonbank” space can ju...

In this paper we analyze some policy implications of incompleteness of markets in trade models, where there is both inter-spatial and intertemporal trade between countries. We interpret the absence of intertemporal trade as an absence of intermediation services provided by both domestic and foreign service providers. For simplicity, we consider extreme cases where intertemporal intermediation s...

Companies in collaborative networks require intermediation to perform. The collaborative network forms the breeding environment for the configuration of a Virtual Enterprise that can handle a business request. This configuration task can be supported by IT services. For collaborative networks such as production networks focused on non-digital services and products we propose to assign specific ...

BACKGROUND This study aims at understanding the mechanisms underlying the dramatic decline of the retail prices of major drugs like cocaine and heroin during the past two decades. It also aims at analysing the implications of this decline for drug policies. METHODS We use a theoretical model to identify the possible causes of this price decline. This allows us to formulate the hypothesis that...

Abstract The article debates the notion of responsibility regarding Judeo-Christian ideas confession and repentance used by professionals Uruguayan juvenile justice system. study follows a critical model qualitative studies through an empirical contextualized research process, based on discourse analysis sample case files interviews. Results show coexistence different theoretical-methodological...

We develop a dynamic model of dealer intermediation between a monopolistic customerdealer (B2C) market and a competitive inter-dealer (B2B) market. Dealers face inventory constraints and adverse selection. We characterize the optimal quote setting and inventory management behavior for both markets in closed form and reveal how price setting in one market segment influences quote behavior in the...

This paper develops a search-theoretic model to study the interaction between banking and monetary policy and how this interaction affects the allocation and welfare. Regarding how banking affects the welfare costs of inflation: First, we find that, with banking, inflation generates smaller welfare costs. Second, we show that, lowering inflation improves welfare not just by reducing consumption...

In this paper, we analyze the interaction between an incumbent rm's nancial contract with a bank and its product market decisions in the face of the threat of entry, in a dynamic model. The main results of the paper are: there exists a separating equilibrium with no limit pricing; the low-cost incumbent repays more to the bank in the rst period, due to the threat of entry; and there are paramet...

We consider a network of intermediaries facilitating exchange between buyers and a seller. Intermediary traders face a private trading cost, a network characterizes the set of feasible transactions, and an auction mechanism sets prices. We examine stable and equilibrium networks. Stable networks, which are robust to agents’ collusive actions, exist when cost uncertainty is acute and multiple, i...