Marzena will be presenting "Innovation in Decentralized Markets", joint 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.
We will have 1 hour of presentation and 15 minutes for discussion.