We propose a model of asset management in which benchmarking arises endogenously, and analyze its unintended welfare … asset prices. Benchmarking inflates asset prices and gives rise to crowded trades, thereby reducing the effectiveness of …, recognizing the crowding, opts for less benchmarking and less incentive provision. We also show that asset management costs are …

We propose a model of asset management in which benchmarking arises endogenously, and analyze its unintended welfare … prices. Benchmarking inflates asset prices and gives rise to crowded trades, thereby reducing the effectiveness of incentive … crowding, opts for less benchmarking and less incentive provision. We also show that asset management costs are lower with …