Marzena Rostek presenting on November 16, 2020

Paper title: “Innovation in Decentralized Markets” with J.H. Yoon

Abstract: This paper examines security design in imperfectly competitive markets in which assets clear separately rather than jointly. Derivatives are generally nonredundant even with zero asset supply. We characterize the scope for introducing nonredundant derivatives and examine the welfare effects of new assets. We compare welfare effects of derivatives vs. innovation in trading technology.

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