Search in Asset Markets: Market Structure, Liquidity, and Welfare
نویسندگان
چکیده
This paper investigates how market structure a¤ects e¢ ciency and several dimensions of liquidity in an asset market. To this end, we generalize the searchtheoretic model of nancial intermediation of Darrell Du¢ e et al. (2005) to allow for entry of dealers and unrestricted asset holdings. Keywords: bid-ask spread, execution delay, liquidity, search, trade volume JEL Classi cation: G11, G12, G21 We thank Joe Haubrich, Ed Nosal, Peter Rupert, Neil Wallace and Pierre-Olivier Weill for useful comments. Financial support from the C. V. Starr Center for Applied Economics at NYU is gratefully acknowledged. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Cleveland or the Federal Reserve System. 1
منابع مشابه
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