We study dynamic task allocation when providers' expertise evolves endogenously through training. We characterize optimal assignment protocols and compare them to discretionary procedures, where it is the clients who select their service providers. Our results indicate that welfare gains from...

We study a search model of investors' asset trading, intermediated by financial institutions that are at risk of selling under pressure. The pressure can lead to the development of a secondary market, where intermediaries bail each other out. Counterintuitively, an increase in competing...