• Publications
  • Influence
Differential Interpretation of Public Signals and Trade in Speculative Markets
Most models of trade in speculative markets assume that agents interpret public information identically. We provide empirical evidence on the relation between the volume of trade and stock returnsExpand
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Peer Pressure and Partnerships
Partnerships and profit sharing are often claimed to motivate workers by giving them a share of the pie. But in organizations of any significant size, the free-rider effects would seem to choke offExpand
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Limit Order Book as a Market for Liquidity
We develop a dynamic model of a limit order market populated by strategic liquidity traders of varying impatience. In equilibrium, patient traders tend to submit limit orders, whereas impatientExpand
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Stock-Based Compensation and CEO (Dis)Incentives
The use of stock-based compensation as a solution to agency problems between shareholders and managers has increased dramatically since the early 1990s. We show that in a dynamic rationalExpand
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Effects of Market Reform on the Trading Costs and Depths of Nasdaq Stocks
The relative merits of dealer versus auction markets have been a subject of significant and sometimes contentious debate. On January 20, 1997, the Securities and Exchange Commission beganExpand
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Brokerage Commissions and Institutional Trading Patterns
The institutional brokerage industry faces an ever-increasing pressure to lower trading costs, which has already driven down average commissions and shifted volume toward low-cost execution venues.Expand
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Liquidity Cycles and Make/Take Fees in Electronic Markets
We develop a model in which the speed of reaction to trading opportunities is endogenous. Traders face a trade-off between the benefit of being first to seize a profit opportunity and the cost ofExpand
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The Right to Return
  • E. Kandel
  • Economics
  • The Journal of Law and Economics
  • 1 April 1996
This article studies the allocation of responsibility for unsold inventory, provision for which is made in practically every distribution contract. The two extreme cases are the consignment contract,Expand
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Liquidity Beyond the Inside Spread: Measuring and Using Information in the Limit Order Book
World equity markets increasingly convert to electronic trading, in many cases adopting the format of a pure electronic order book without intermediaries. A distinguishing feature of this format isExpand
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A Rational Expectations Theory of Kinks in Financial Reporting
We present a rational model of earnings management. An informed manager, whose compensation is linked to the stock price, trades off the benefit of boosting the stock price by inflating the reportedExpand
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