We develop a method for solving for equilibrium outcomes in stationary strategic settings in which speculators are informationally large and understand how their actions affect the information content of prices. This allows us to characterize speculation by institutional investors who receive...

A firm monopsonistically hires labor from a pool containing both skilled and unskilled workers. The marginal value of a worker depends on the match between the job and the worker's skill level. Unskilled workers can have negative productivity if they are placed in a skilled job. The firm cannot...