This paper constructs a model of directed search in the interbank market and tests its empirical implications with data from the Libor benchmark setting process. Interbanking rates were until recently based on judgmental estimates of borrowing costs published by a panel of banks. We interpret...

This paper provides some striking results that arise in the unique symmetric equilibrium of common value multiunit auctions in which some bidders are better informed than others. We show that bidders with worse information can do surprisingly well: They can win with higher probability than...