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Institutional design in equilibrium models of financial markets with asymmetric information

Objectif



The purpose of this project is to investigate the informational efficiency of prices in exchange institutions where alternative market formats, for trade on a single asset, coexist.
In modern financial markets, this is often the case. A particularly common example is that of assets that get traded both in a centralized market and in an "over the counter" or OTC market. In the first case, equilibrium prices are set as in a double auction, while in the second case, a search theoretical approach would be more appropriate.
Market participants can be either informational traders or liquidity traders. The coexistence of the two market forms described, will improve informational efficiency of prices, if informed traders are more attracted to the centralized markets, and noise traders more attracted to the OTC market. I will look for conditions under which this is the case.

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Programme(s)

Thème(s)

Appel à propositions

Données non disponibles

Régime de financement

RGI - Research grants (individual fellowships)

Coordinateur

UNIVERSITAT POMPEU FABRA
Contribution de l’UE
Aucune donnée
Adresse
25-27,Ramon Trias Fargas 25-27
08005 BARCELONA
Espagne
Coût total
Aucune donnée

Participants (1)