Competition between Exchanges: A research Agenda

Estelle Cantillon and Pai-Ling Yin

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

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 market; tipping; competition; market structure; market microstructure (search for similar items in EconPapers)
JEL-codes: G29 L13 L15 L40 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (17)

Published in: International journal of industrial organization (2011) v.29,p.329-336

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Persistent link: https://EconPapers.repec.org/RePEc:ulb:ulbeco:2013/99386

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