Salomonsson, Marcus - Economics Institute for Research (SIR), … - 2006
decrease, as claimed
in the earlier literature.
Keywords: Market microstructure, no-trade theorems, adverse selection
JEL … never gain from trading with them - and
might sometimes lose. This adverse selection problem may lead to market making not … was caused by adverse selection, as claimed by Copeland and
Galai (1983), then traders would demand a higher return if …