Andrea Prat

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What are the equilibrium features of a dynamic …nancial market in which traders care about their reputation for ability? We modify a standard sequential trading model to include traders with career concerns. We show that this market cannot be informationally e¢ cient: there is no equilibrium in which prices converge to the true value, even after an in…nite(More)
I introduce a microfounded model of campaign finance with office-seeking politicians, a continuum of voters, and a large number of heterogeneous lobbies. Lobbies make contributions to politicians according to a common agency framework. Politicians use contributions to finance their electoral expenditures. Voters are not fooled by electoral expenditures:(More)
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