Competition in Financial Innovation
研究了无摩擦市场中资产所有者通过创新资产支持证券的激励，发现即使创新成本极低，竞争也无法提供足够激励，导致金融市场在均衡中始终不完整。
This paper examines the incentives offered by frictionless markets to innovate asset-backed securities by owners who maximize the assets' values. Assuming identical preferences across investors with heterogeneous risk-sharing needs, we characterize economies in which competition provides insufficient incentives to innovate so that, in equilibrium, financial markets are incomplete in all (pure strategy) equilibria, even when innovation is essentially costless. Thus, value maximization does not generally result in complete markets.