Competition between exchanges: A research agenda

Estelle Cantillon and Pai-Ling Yin

International Journal of Industrial Organization, 2011, vol. 29, issue 3, 329-336

Abstract: This paper describes open research questions related to the competition and market structure of financial exchanges and argues that only a combination of industrial organization and finance can satisfactorily attack these questions. Two examples are discussed to illustrate how the combination of these two approaches can significantly enrich the analysis: the "network externality puzzle", which refers to the question of why trading for the same security is often split across trading venues, and the impact of the multi-sided character of financial exchanges on pricing and profitability.

Keywords: Network; effects; Two-sided; markets; Competition; Tipping; Market; structure; Market; microstructure (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:29:y:2011:i:3:p:329-336

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