i.e. there is no noise trader risk. Instead, traders expect that new rational entrants with different information in the …

explore this possibility, I develop a theory that unifies models of investment choice, informal risk sharing, and formal … financial contracts. I then test the predictions of this theory using a series of experiments with clients of a large … inefficiencies. First, borrowers free-ride on their partners, making risky investments without compensating partners for this risk …

competition a¤ects the industrial dynamics of investment, concentration, and expected returns. When firms have similar production …