A Search Model of Centralized and Decentralized Trade

Jianjun Miao ()

Microeconomics from EconWPA

Abstract: This paper presents a search model of centralized and decentralized trade. In a centralized market, trades are intermediated by market makers at publicly posted bid-ask prices. In a decentralized market, traders search counterparties. Prices are negotiated and transactions are conducted in private meetings among traders. Traders can choose which market to enter. The determinant of bid-ask spreads and liquidity is analyzed. The welfare consequence of the market fragmentation is also analyzed.

JEL-codes: D1 D2 D3 D4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge
Date: 2004-10-16
Note: Type of Document - pdf
View list of references View citations in EconPapers

Downloads: (external link)
http://129.3.20.41/eps/mic/papers/0410/0410003.pdf (application/pdf)

Related works:
Working Paper: A Search Model of Centralzied and Decentralized Trade (2005)
Working Paper: A search model of centralized and decentralized trade (2005)
Journal Article: A search model of centralized and decentralized trade (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpmi:0410003

Access Statistics for this paper

More papers in Microeconomics from EconWPA
Series data maintained by EconWPA ().