An experimental structure is demonstrated that represents end-use customers in electricity markets who can substitute part of their usage between day and night. Each customer’s demand relationship is represented by a two-step value function for each period, disaggregated from observed market demand relationships, that varies between day and night and during heat-waves. Three alternative demand-...

• Observe that land sales markets between large landlords and small peasants are thin/segmented because: 1. Land is overpriced for small buyers relative to value in use (borrowing capacity): the price of land internalizes tax advantages, expected speculative gains, wealth sheltering, social status effects, and collateral value. 2. Smallholders do not have access to long term credit. 3. Even if ...

Credit default swaps (CDS) are the most common type of credit derivatives used for hedging and speculative purposes in markets. We consider a representative risk-averse investor who has initial endowment instrument invests traditional financial instruments. Using utility indifference pricing approach, we construct framework single-name CDS contracts with periodic payments multi-period model. Mo...

We study a dynamic, decentralized market environment with asymmetric information and interdependent values between buyers and sellers, and characterize the complete set of equilibria. The model delivers a stark relationship between the severity of the information frictions and the time it takes for the market to clear, or market liquidity. We use this framework to understand how asymmetric info...

We study the trade of indivisible goods using credit, divisible money and divisible assets in a frictional market. We show how indivisibility matters for equilibria. Bargaining generates a price that is not linked to nominal interest rates, dividend value of the asset, or the number of active buyers. To reestablish this connection, we consider price posting with competitive search. We provide c...

I empirically analyze credit market outcomes when competing lenders are differentially informed about the expected return from making a loan. I study the residential mortgage market, where property developers often cooperate with vertically integrated mortgage lenders to offer financing to buyers of new homes. I show that these integrated lenders have superior information about the construction...

Abstract This study examines the influence of housing credit conditions on time market (TOM) for residential properties in Italy, using a unique dataset from Bank Italy survey Italian market. The analysis was carried out sample roughly 1000 real estate agents over period 2011–2015 panel data techniques. results support view that an increase liquidity, measured by loan‐to‐value ratio, reduces av...

This article investigates the degree to which buyers choose diversify their use of payment methods for in-person purchases. Some only one instrument. Others combine mostly cash, credit, and debit cards, a few paper checks prepaid cards. To each survey respondent, I apply three concentration inequality measures over instruments. Results show that average median consumers’ slightly decline with v...