Theory on high-frequency traders (HFT) predicts that market liquidity for a security decreases in the number of HFT … theory, which models HFT as a price competitor, we provide evidence more consistent with HFT fitting a quantity competitor …

competition and trade frictions - that explains the prevalence of fixed-price selling. Using a market equilibrium approach, and … aversion, the degree of trade frictions and the level of market competition - we explore the strategic choice between the fixed …, Cournot, Bertrand frameworks, the competitive search framework enables us to model competition with a large number of buyers …