The Effects of Make and Take Fees in Experimental Markets

Vince Bourke and David Porter
Additional contact information
Vince Bourke: Economic Science Institute, Chapman University

Working Papers from Chapman University, Economic Science Institute

Abstract: We conduct a series of experiments to examine the effects of the make and take fee structure currently used by equity exchanges in the U.S. We examine the effects of these fees on measures of market quality (allocative efficiency, trading volume, book depth, and the bid-ask spread). With the exception of increased book depth, we document no significant effects of make and take fees relative to a baseline case in which trading fees are assessed on both sides of a transaction.

Keywords: make and take fees; double auction; experimental economics (search for similar items in EconPapers)
JEL-codes: G12 G14 G2 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-exp and nep-mst
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.chapman.edu/research-and-institutions/e ... ke-and-take-fees.pdf

Related works:
Journal Article: The effects of make and take fees in experimental markets (2019)
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:chu:wpaper:15-19

Access Statistics for this paper

More papers in Working Papers from Chapman University, Economic Science Institute Contact information at EDIRC.
Bibliographic data for series maintained by Megan Luetje ().