A Search Model of Centralized and Decentralized Trade
Jianjun Miao
Microeconomics from University Library of Munich, Germany
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)
Date: 2004-10-16
New Economics Papers: this item is included in nep-dge
Note: Type of Document - pdf
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Citations: View citations in EconPapers (5)
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Related works:
Journal Article: A search model of centralized and decentralized trade (2006) 
Working Paper: A Search Model of Centralzied and Decentralized Trade (2005) 
Working Paper: A search model of centralized and decentralized trade (2005) 
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpmi:0410003
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