EconPapers    
Economics at your fingertips  
 

Liquid bundles

Emmanuel Farhi () and Jean Tirole

Journal of Economic Theory, 2015, vol. 158, issue PB, 634-655

Abstract: Parties in financial markets, industries, compensation design or politics may negotiate on either a piecemeal or a bundled basis. Little is known about the desirability of bundling when values are common and/or information endogenous. The paper shows that bundling encourages information-equalizing investments, thereby facilitating trade. It accordingly revisits and qualifies existing knowledge on security design.

Keywords: Liquidity; Security design; Tranching; Information acquisition (search for similar items in EconPapers)
JEL-codes: D82 E51 G12 G14 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022053114001239
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Liquid Bundles (2013) Downloads
Working Paper: Liquid Bundles (2013) Downloads
Working Paper: Liquid Bundles Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:158:y:2015:i:pb:p:634-655

Access Statistics for this article

Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell

More articles in Journal of Economic Theory from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-04-19
Handle: RePEc:eee:jetheo:v:158:y:2015:i:pb:p:634-655