Equilibrium models with strategic traders

This dissertation focuses on using equilibrium models with strategic traders to solve problems. We start with the asset pricing puzzles. We build a Nash equilibrium model to resolve the interest rate puzzle. We find a closed-form solution and give an existence proof. We find that compared to the analogous Pareto-efficient equilibrium model, price-impact has an amplification effect on risk-sharing distortions that helps resolve the interest rate puzzle. Next, we introduce the predatory trading. We propose a Nash equilibrium model with asymmetric informed and restricted traders to study that. Finally, we propose another equilibrium model with heterogeneously informed traders to study predatory trading.Ph.D.Includes bibliographical reference