Working Paper
Search in Asset Markets: Market Structure, Liquidity, and Welfare
This paper investigates how market structure affects efficiency and several dimensions of liquidity in an asset market. To this end, we generalize the search-theoretic model of financial intermediation of Darrell Duffie et al. (2005) to allow for entry of dealers and unrestricted asset holdings.
Suggested Citation
Lagos, Ricardo, and Guillaume Rocheteau. 2007. “Search in Asset Markets: Market Structure, Liquidity, and Welfare.” Federal Reserve Bank of Cleveland, Working Paper No. 07-01. https://doi.org/10.26509/frbc-wp-200701
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