I study how the arrival of new private information affects bargaining outcomes. A seller makes offers to a buyer. The buyer is privately informed about her valuation and the seller privately observes her stochastically changing cost of delivering the good. Prices fall gradually at the early...

We study optimal security design when issuer and market participants disagree about the characteristics of the underlying asset. We show that pooling and tranching assets can be preferable to selling optimal securities backed by individual assets: pooling can be a response to belief disagreement...

We study the problem of a principal who relies on the reports of a monitor to provide incentives to an agent. We allow for collusion, so that the agent and monitor can side-contract on what report to send. We show that the principal can benefit from creating endogenous asymmetric information...