Peter M. DeMarzo

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Peter M. DeMarzo

Mizuho Financial Group Professor of Finance

Phone: 650.736.1082
Fax: 650.725.7979
Post: Graduate School of Business, Stanford, CA 94305-5015
Current Courses: Managerial Finance (fall), Financial Modeling (spring)
Office Hours: By Appointment, L231
Email: pdemarzo@stanford.edu
Vita
Stanford Graduate School of Business Finance Group

 

Prior Academic Positions

• Haas School of Business, UC Berkeley, 1997-2001.
• Kellogg Graduate School of Management, Northwestern University, 1989-1997.
• National Fellow, Hoover Institution, 1992-1993.

Education

• Ph.D., Economics,  Stanford University, 1989.
• M.S., Operations Research, Stanford University, 1985.
• B.A., Cognitive Science, University of California, San Diego, 1984.
• B.A., Applied Mathematics, University of California, San Diego, 1984.

Teaching Interests Corporate Finance Derivative Securities Markets Courses Taught:  Managerial Finance, Financial Modeling, Introduction to Finance, Corporate Finance, Futures and Options, Derivative Securities Markets, Doctoral Seminar in Corporate Finance, Doctoral Seminar in Asset Pricing

Research Interests Security Design. Contract Theory. Corporate Financial Policy. Asymmetric Information and Trade. General Equilibrium Theory.

Selected Papers & Publications

• "A Continuous-Time Agency Model of Optimal Contracting and Dynamic Capital Structure," with Yuliy Sannikov, forthcoming, Journal of Finance.
• "Agency and Optimal Investment Dynamics," with Michael Fishman, forthcoming, Review of Financial Studies.
• "Optimal Trading and Asset Pricing with a Large Shareholder," with Branko Urosevic, forthcoming, Journal of Political Economy.
• "Bidding with Securities: Auctions and Security Design," with Ilan Kremer and Andrzej Skrzypacz, American Economic Review, 2005, 95, 936-959.  (WFC Best Paper Award, 2004.)
• "Optimal Long-Term Financial Contracting with Privately Observed Cash Flows," with Michael Fishman. (WFA Best Corporate Finance Paper Award, 2001.)
• "Contracting and Enforcement with a Self-Regulatory Organization," with Michael Fishman and Kathleen Hagerty.  Review of Economic Studies, 2005, 72, 687-706.
• "The Pooling and Tranching of Securities: A Model of Informed Intermediation." Review of Financial Studies, 2005, 18, 1-35.
• "A Near-Rational Model of Persuasion -- With Implications for Financial Markets," with Dimitri Vayanos and Jeff Zwiebel .
• "Diversification as a Public Good: Community Effects in Portfolio Choice," with Ron Kaniel and Ilan Kremer, Journal of Finance, 2004, 59, 1677-1715.
• "Persuasion Bias, Social Influence and Uni-Dimensional Opinions. with Dimitri Vayanos and Jeff Zwiebel,   Quarterly Journal of Economics, 2003, 118:03, 909-968.
• "Aggregation, Determinacy, and Informational Efficiency for a Class of Economies with Asymmetric Information," with Costis Skiadas, Journal of Economic Theory, 1998, 80, 123-152.
• "Optimal Incentive Contracts when Agents Can Save, Borrow, and Default," with David Bizer, Journal of Financial Intermediation, 1999, 8, 241-269.
• "A Liquidity-Based Model of Security Design," with Darrell Duffie, Econometrica, 1999, 67, 65-99.
• "Sequential Trade and the Coase Conjecture:  A General Model of Durable Goods Monopoly with Applications to Finance," with David Bizer.
• "The Optimal Enforcement of Insider Trading Regulations," with Michael Fishman and Kathleen Hagerty, Journal of Political Economy, 1998, 106, 602-632.
• "On the Uniqueness of Fully Informative Rational Expectations Equilibria," with Costis Skiadas, Economic Theory, 1999, 13, 1-24.
• "Computing Equilibria of GEI by Relocalization on a Grassmann Manifold," with Curtis Eaves, Journal of Mathematical Economics, 1996, 26, 479-497.
• "Computing Zeros of Sections of Vector Bundles using Homotopies and Relocalization," with Donald Brown and Curtis Eaves, Mathematics of Operations Research, 1996, 21, 26-43.
• "Corporate Incentives for Hedging and Hedge Accounting," with Darrell Duffie, Review of Financial Studies, 1995, 8, 743-771.
• "Computing Equilibria when Asset Markets are Incomplete," with Donald Brown and Curtis Eaves, Econometrica, 1996, 64, 1-27.
• "Corporate Financial Hedging with Proprietary Information," with Darrell Duffie, Journal of Economic Theory, 1991, 53, 261-286.
• "Coalitions, Leadership, and Social Norms: The Power of Suggestion in Games," Games and Economic Behavior, 1992, 4, 72-100.
• "Sequential Banking," with David Bizer, Journal of Political Economy, 1992, 100, 41-61.
• "Majority Voting and Corporate Control: The Rule of the Dominant Shareholder," Review of Economic Studies, 1993, 60, 713-734.
• "An Extension of the Modigliani-Miller Theorem to Stochastic Economies with Incomplete Markets and Interdependent Securities," Journal of Economic Theory, 1988, 45, 353-369.

Professional Activities

• Vice President: Western Finance Association
• Director: American Finance Association.
• Program Committee Member (current or former): Western Finance Association, Utah Winter Finance Conference, American Finance Association.
• Associate Editor (current or former): Financial Management, The Review of Financial Studies, B.E. Journal in Economic Analysis and Policy.

 

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