Working Papers

Coexistence of Banks and Non-Banks: Intermediation Functions and Strategies

Nicola Catorelli, Gonzalo Cisternas, Asani Sarkar
NEW
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  • What’s special about non-banks and how do they interact with banks?
  • We integrate existing models under a common framework and explore new questions on the coexistence between banks and non-banks

Misinformation in Social Media: The Role of Verification Incentives

Gonzalo Cisternas and Jorge Vasquez
R&R Journal of the European Economic Association - New Version
PDF  
  • When people verify and share news, strategic complementarities in verification incentives can arise
  • High rates of misinformation production and diffusion can then be consistent with more welfare

A Note on the Comparative Statics of Optimal Procurement Auctions

Gonzalo Cisternas and Nicolás Figueroa
PDF  
  • A supplier with private information about her costs becomes more efficient
  • Will this lead to more profits when an optimal mechanism is in place?

Publications

Leader-Follower Dynamics in Shareholder Activism

Doruk Cetemen, Gonzalo Cisternas, Aaron Kolb and S. Viswanathan
Journal of Finance, forthcoming
PDF   Online Appendix   Code files  
  • We develop a theory of coordination and influence among blockholders
  • To control acquisition costs, activists build blocks in sequence; order flows are then used to influence others to bear greater intervention costs

Signaling with Private Monitoring

Gonzalo Cisternas and Aaron Kolb
The Review of Economic Studies , 92(2), 909–953, 2025
PDF   Journal Article   Supplementary Appendix   Code: spm.nb  
  • A dynamic signaling game in which the receiver’s observations are private leads to a complex problem of higher-order beliefs
  • Situations like this abound – we introduce a framework for analyzing them

Consumer Scores and Price Discrimination

Alessandro Bonatti, Gonzalo Cisternas
The Review of Economic Studies, 87(2), 750–791, 2020
PDF   Slides   Journal Article   Supplementary Appendix   Code: scores.nb  
Corrigendum  
  • A score based on signals of past purchases is used to price discriminate
  • Strategic consumers can benefit from data collection, but score transparency is key

Career Concerns and the Nature of Skills

Gonzalo Cisternas
American Economic Journal: Microeconomics, 10(2), 152-89, 2018
PDF   Journal Article   Media: AEA Research Highlights
  • Workers exert effort to attempt to boost their reputations for being skilled
  • Whether skills are endogenous or not matters

Two-Sided Learning and the Ratchet Principle

Gonzalo Cisternas
The Review of Economic Studies, 85(1), 307–351, 2018
PDF   Slides   Journal Article  
  • Attempting to manipulate others’ beliefs can come at the cost of higher expectations of future performance
  • An unexpected way to find equilibria based on a novel ODE is uncovered

Dynamic Oligopoly with Incomplete Information

Alessandro Bonatti, Gonzalo Cisternas, Juuso Toikka
The Review of Economic Studies, 84(2), 503–546, 2017
PDF   Slides   Journal Article  
  • A market in which prices are noisy and firms have private information about their costs opens up
  • A race for leadership with firms trying to manipulate rivals’ beliefs emerges

Sequential Procurement Auctions and Their Effect on Investment Decisions

Gonzalo Cisternas, Nicolas Figueroa
RAND Journal of Economics, 46, 824-843, 2015
PDF   Slides   Journal Article  
  • Can a buyer promote competition and cost-reducing investments among suppliers?
  • Optimal advantages to past winners can achieve both goals