A search model of centralized and decentralized trade

被引：18
|
作者：
Miao, JJ [1 ]
机构：
[1] Boston Univ, Dept Econ, Boston, MA 02215 USA
来源：
REVIEW OF ECONOMIC DYNAMICS | 2006年 / 9卷 / 01期
关键词：
search; matching and bargaining; bid-ask spread; liquidity; welfare; walrasian equilibrium;
D O I：
10.1016/j.red.2005.10.003
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
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 determinants of bid-ask spreads and liquidity are analyzed. The welfare consequence of the market fragmentation is also analyzed. It is shown that compared to the competitive market-making, monopolistic market-making may improve social welfare. (c) 2005 Elsevier Inc. All rights reserved.
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页码：68 / 92
页数：25
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