Endogenous Intermediation in Over-the-Counter Markets
2016/12/13
研討會日期 : 2016-12-13
時間 : 14:30
主講人 : Professor Tai-Wei Hu
主持人 : Professor Chih-Chun Yang
地點 : Conference Room B110
演講者簡介 : Prof. Hu received his Ph.D. in Economics from Penn State University in 2009. He is currently an Assistant Professor at Kellogg School of Management, Northwestern University. His research fields are Monetary economics, Banking theory, and Game theory.
演講摘要 : We provide a theory of trading through intermediaries in OTC markets. The role of intermediaries is to sustain trade. In our model, traders are connected through an informational network. Agents observe their neighbors’ actions, and can trade with their counterparty in a given period through a path of intermediaries in the network. Nevertheless, agents can renege on their obligations. We show that trading through an informational network is essential to support trade, when agents infrequently meet the same counterparty. However, intermediaries must receive fees to implement trades.
Concentrated intermediation, as represented by a star network, is both constrained efficient and stable, when agents incur linking costs. The center agent in a star can receive higher fees as well.
