Topic: Exchange Competition, Entry, and Welfare
Speaker: Xavier Vives,Professor of Economics and Finance, IESE Business School
Date: October 14, 2020 (Wednesday)
Time: 16:00-17:30
Location: 4-101
Language: English
Abstract:
We assess the consequences for market quality and welfare of different entry regimes and exchange pricing policies, integrating a microstructure model with a free-entry, exchange competition model where exchanges have market power in technological services. Free-entry delivers superior liquidity and welfare outcomes vis-à-vis an unregulated monopoly, but entry can be excessive or insufficient. Depending on the extent of the monopolist’s technological services undersupply compared to the First Best, a planner can achieve a higher welfare controlling entry or platform fees.
About the speaker:
Xavier Vives is professor of Economics and Finance at IESE Business School. He holds a Ph.D. in Economics from UC Berkeley.
Fellow of the Econometric Society since 1992; of the European Economic Association since 2004; and of the Academia Europaea since 2012. President of the European Association for Research in Industrial Economics for 2016-2018. He has taught at INSEAD, Harvard University, Universitat Autònoma de Barcelona, Universitat Pompeu Fabra, UC Berkeley, University of Pennsylvania, and New York University.
His fields of interest are industrial organization and regulation, banking and financial economics. He has published more than a hundred articles in the main international journals and several books, the most recent being Competition and Stability in Banking. He is currently co-editor of JEMS and editor of JET.
Dr. Vives has served as advisor for the World Bank, the Inter-American Development Bank, the European Commission, the Federal Reserve Bank of New York, as well as for international corporations. Duisenberg Fellow of the European Central Bank in 2015 and recipient of the European Research Council Advanced Grant in 2009-2014 and 2018-2023. In 2011-2014 he was Special Advisor to the EU Commissioner for Competition, Mr Joaquín Almunia.
