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The Quiet Hand of Regulation: Harnessing Uncertainty and Disagreement

Lorenzo Garlappi , Daniel Andrei   May 12,2025

Working Paper No.00152-00

Regulating externalities is particularly challenging in the presence of uncertainty and disagreement among economic agents. Traditional Pigouvian and Coasean approaches... Read More

Risk seekers: trade, noise, and the rationalizing effect of market impact on convex preferences

Efstathios Avdis   Oct 08,2020

Working Paper No.00051-02

Long-held intuition dictates that information-based trade is impossible without exogenous noise. Risk seekers can resolve this conundrum. Even though such... Read More