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Cambridge Endowment for Research in Finance (CERF)


Matt Elliott

Title of research: 

Networked Markets and Relational Contracts---joint with Ben Golub (Harvard) and Matt Leduc (Paris School of Economics).

We seek to better understand the dynamic structure of networks of business relationships. We empirically investigate the market for freelancers to gather data on the role of relationships between freelancers and their clients and on which freelancers rely more on strong relationships. We find some surprising results but are able to reconcile them with a relational contracting theory of networked markets. This model provides a new mechanism that can account for slow recoveries---the quick destruction and slow accumulation of social capital. An important application of the model is to bank relationships.

Project Update - April 2020

Project Update - August 2019

Project Update - April 2019

Project Update - August 2018