An Insurance Broker for Every Small Business: The Economics of Exceptional Care at Scale

Who Pays the Most to Trade? Cross-client Dispersion in OTC Liquidity Prices

This study analyzes the wide dispersion in bid-ask spreads across clients in over-the-counter (OTC) markets. Our data detailed data comprise a dealing bank's complete trading record in a major OTC contract and include client IDs, seven client types, and precise markups. Average spreads are lowest for hedge funds (<1...

FROM OWNERSHIP TO SUBSCRIPTION: FINANCIAL MARKETS, RECURRING REVENUE, AND THE EROSION OF HOUSEHOLD WEALTH

The subscription business model has evolved from an alternative price point into the norm by which whole sectors transact with end-users for their products across software, entertainment, transport, fashion, and everyday consumer goods. This paper poses a more focused question than most discussions about the subscripti...

Retail ownership and earnings management

We exploit the October 2019 abolition of trading commissions by major U.S. brokerages as a quasi‐natural experiment examining how retail ownership affects earnings management. Firms with high pre‐event retail interest earned positive abnormal returns, consistent with an expanded investor base lowering the cost of cap...

Private Markets in Retirement Plans: A Fiduciary Framework for Evaluation and Implementation

Recent regulatory initiatives have renewed interest in incorporating private markets into US defined contribution plans. The central question, however, is not whether such assets should be categorically permitted, but how plan fiduciaries can evaluate and implement them prudently. This article develops a practical fram...

Nonfinancial Firms as Cross-Market Arbitrageurs

Arbitrage in Estimate Nothing: an example

We give a two-period counterexample to the absence of arbitrage for the posterior-weighted pricing rule in Estimate nothing by Duembgen and Rogers. Both physical models have strictly positive transition densities, and each model is equipped with an equivalent martingale measure. Nevertheless, the mixed price of a singl...