BRETT GREEN
Professor of Finance

Publications

Digital Collateral
The Quarterly Journal of Economics, 2024, 139(3): 1713–1766
with Paul Gertler and Catherine Wolfram
Abstract
We study a new form of lending in developing countries that uses digital collateral—the threat of remotely disabling a device—to secure loans for smartphones and other consumer durables. Using "lockout" technology, lenders can enforce repayment even absent traditional collateral or credit histories. [SSRN] [Slides] [NBER Digest] [VoxDev]
(Reverse) Price Discrimination with Information Design
AEJ: Microeconomics, 2024, 16(2): 267–295
with Dong Wei
Abstract
We study a model of price and information discrimination in which a monopolist can segment consumers and design both prices and information policies for each segment. [SSRN] [Slides]
Due Diligence
The Journal of Finance, 2024, 79(3): 2115–2161
with Brendan Daley and Thomas Geelen
Abstract
We study the role of due diligence in corporate and real estate transactions, developing a model that captures the dynamic interplay between information acquisition and bargaining. [SSRN] [Slides]
Designing Securities for Scrutiny
The Review of Financial Studies, 2023, 36(9): 3693–3737
with Brendan Daley and Victoria Vanasco
Abstract
We study the impact of scrutiny—such as credit ratings, analyst recommendations, and mandatory disclosures—on the optimal design of securities. [SSRN]
Optimal Arrangements for Distribution in Developing Markets: Theory and Evidence
AEJ: Microeconomics, 2022, 14(1): 411–450
with William Fuchs and David Levine
Abstract
We study supply-side barriers and self-enforcing arrangements for vendors in developing markets. [SSRN] [Slides] [Freakonomics] [The Economist]
Aggregation and Design of Information in Asset Markets with Adverse Selection
Journal of Economic Theory, 2021, 191: 105–124
with Vladimir Asriyan and William Fuchs
Abstract
We study information aggregation in decentralized marketplaces subject to adverse selection. [SSRN] [Slides]
Bargaining and News
American Economic Review, 2020, 110(2): 728–774
with Brendan Daley
Abstract
We study bargaining with gradual learning about the seller's type, analyzing how the arrival of news affects equilibrium dynamics and outcomes. [SSRN] [Slides]
Securitization, Ratings, and Credit Supply
Journal of Finance, 2020, 75(2): 1037–1082
with Brendan Daley and Victoria Vanasco
Abstract
We study the interaction between credit ratings and bank incentives in securitization markets. [SSRN] [Slides]
Liquidity Sentiments
American Economic Review, 2019, 109(11): 3813–3848
with Vladimir Asriyan and William Fuchs
Abstract
We study self-fulfilling sentiments arising from adverse selection and resale considerations in asset markets. [SSRN] [Slides]
The Hot-Hand Fallacy: Cognitive Mistake or Equilibrium Response? Evidence from Major League Baseball
Management Science, 2018, 64(11): 5315–5348
with Jeff Zwiebel
Abstract
We study the hot hand phenomenon in baseball, accounting for endogenous defensive responses. Our evidence suggests that the hot hand is real but partially masked by strategic adjustments. [SSRN] [Slides] [NY Times] [Washington Post] [Boston Globe] [ESPN] [Priceonomics] [Quartz]
Information Spillovers in Asset Markets with Correlated Values
American Economic Review, 2017, 107(7): 2004–2040
with Vladimir Asriyan and William Fuchs
Abstract
We study multiple equilibria and information spillovers in markets with correlated asset values. [SSRN] [Slides]
Breakthroughs, Deadlines, and Self-Reported Progress: Contracting for Multistage Projects
American Economic Review, 2016, 106(12): 3660–3699
with Curtis Taylor
Abstract
We study optimal contracts with deterministic and stochastic deadlines for multistage projects with moral hazard. [SSRN] [Slides]
An Information-Based Theory of Time-Varying Liquidity
Journal of Finance, 2016, 71(2): 809–870. Brattle Group Distinguished Paper Prize
with Brendan Daley
Abstract
We develop a theory of time-varying liquidity based on asymmetric information, showing how the information environment endogenously generates variation in market liquidity. [SSRN] [Slides]
Adverse Selection, Slow Moving Capital, and Misallocation
Journal of Financial Economics, 2016, 120(2): 286–308
with William Fuchs and Dimitris Papanikolaou
Abstract
We study delays in divestment decisions due to adverse selection and how they lead to slow economic recovery. [SSRN] [Slides]
Signal or Noise? Uncertainty and Learning about Whether Other Traders Are Informed
Journal of Financial Economics, 2015, 117(2): 398–423
with Snehal Banerjee
Abstract
We study uncertainty about trader information and non-linear price dynamics that arise when agents are uncertain about the information content of order flow. [SSRN] [Slides]
Market Signaling with Grades
Journal of Economic Theory, 2014, 151(1): 114–145
with Brendan Daley
Abstract
We study the role of public information in market signaling models, analyzing how grading affects equilibrium outcomes. [SSRN] [Slides]
Waiting for News in the Market for Lemons
Econometrica, 2012, 80(4): 1433–1504
with Brendan Daley
Abstract
We study gradual learning and trade breakdown in dynamic markets with adverse selection, developing a continuous-time model of trade in which news about the asset arrives over time. [SSRN] [Slides]