Information Technology and Trader Competition in Financial Markets: Endogenous Liquidity

Sanjeev Dewan () and Haim Mendelson ()
Additional contact information
Sanjeev Dewan: Graduate School of Management, University of California, Irvine, California 92697
Haim Mendelson: Graduate School of Business, Stanford University, Stanford, California 94305-5015

Management Science, 2001, vol. 47, issue 12, 1581-1587

Abstract: This note integrates the models of Dewan and Mendelson (1998) (DM) and Kyle (1985), extending the DM analysis of time-based competition in financial markets to the case of endogenous liquidity. The results enable us to examine the link between information technology investments, trading strategies, and liquidity.

Keywords: Information Technology; Financial Markets; Liquidity; Time-Based Competition (search for similar items in EconPapers)
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.47.12.1581.10241 (application/pdf)

Related works:
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: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:47:y:2001:i:12:p:1581-1587

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().