Working Papers

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

Nicola Catorelli, Gonzalo Cisternas, Asani Sarkar
NEW
PDF  
  • 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

Leader-Follower Dynamics in Shareholder Activism

Doruk Cetemen, Gonzalo Cisternas, Aaron Kolb and S. Viswanathan
Forthcoming at the Journal of Finance
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

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

Signaling with Private Monitoring

Gonzalo Cisternas and Aaron Kolb
The Review of Economic Studies, forthcoming
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