Focusing on homogeneous beliefs, we can distinguish two commonly shared ideas that, i) the competition between informed traders destroys their trading profits, ii) trading with a noisy signal brings about a loss in the expected profits. So far, it has been proved in the latter framework, that...

This paper analyzes the strategic competition between privately informed fast (FT) and slow traders (ST). In accordance with the overwhelming findings in the empirical literature, we find that the speed advantage of FTs has a beneficial effect on market liquidity as well as price efficiency. We...