000			01396nam a22001457a 4500
999			_c525942 _d525942
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100			_aRostek, Marzena and Yoon, Ji Hee _951887
245			_aInnovation in decentralized markets: Technology versus synthetic products
260			_aAmerican Economic Journal: Microeconomics
300			_a16(1), Feb, 2024: p.63-109
520			_aAdvances in market-clearing technology for multiple assets and synthetic products present alternative ways to leverage complementarities and substitutabilities in asset payoffs. This paper compares their equilibrium and welfare effects. In competitive markets, either instrument can mimic the efficient design. When traders have price impact, however, synthetic products and market-clearing technology provide separate instruments for impacting markets' performance and can generate synergies or trade-offs. Neither instrument can generally reproduce the other's payoffs state by state. Moreover, innovation in market clearing renders additional synthetic products nonredundant. Our analysis points to the advantages of each type of innovation while also exposing potential risks.- Reproduced https://www.aeaweb.org/articles?id=10.1257/mic.20220138#:~:text=Abstract,can%20mimic%20the%20efficient%20design.
773			_aAmerican Economic Journal: Microeconomics
906			_aINNOVATION
942			_cAR