This course explores recent developments on the interaction between market power and financial markets. Market power is pervasive across all sectors of economic activity. In financial markets, market power is essentially an outcome of market structure. Thus decentralized trading, either in over the counter or fragmented markets, is inherently associated with market power. Implications of market power are wide-ranging. Market power can be a source of market incompleteness. As a consequence, market power directly affects financial products brought to the market. Thus, misallocation can arise due to market power. We will start the course with properly introducing the concept of market power and various ways of measuring it. We will then proceed to understand the particularities of market power in financial markets. We will pay attention to the implication of financial infrastructure for innovation in financial products. We will conclude with a set of lectures that address questions at the intersection between financial markets and products markets and identify open areas for research. Prerequisites: Econ 501, Econ 502, Econ 503, Econ 504. 1.5 units
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