We develop a general model of decentralized exchange. Our model allows for any number of traders and traded assets, and any form of market decentralization, including trading environments determined by an arbitrary network structure. We study how the equilibrium allocation and liquidity depend...

Most assets are traded in multiple interconnected trading venues. This paper develops an equilibrium model of decentralized markets that accommodates general market structures with coexisting exchanges. Decentralized markets can allocate risk among traders with different risk preferences more...