through the spread between bid (wholesale) and ask (retail) prices. Budget constraints, enforced at each trading post … conventional convexity and continuity conditions while structuring the price space to account for distinct bid and ask price ratios …

setting bid and ask prices nearly equal to Walrasian equilibrium prices. In our model agents choose to trade either through … (bid) price, but sacrifice the spread as gains. A buyer or seller who trades privately shares all the gains to trade with … equilibrium bid and ask prices converge to the Walrasian equilibrium prices. …

histogram of private asset values and private information endowments to the inside bid and ask price. Basic relationships …. Traders are risk neutral as long as the transacted quantities are small, so that the limit and the market order decisions … within one trading round do not feed back into private values. I formulate the equations that characterize the best ask and …

The Kyle (1985) model is extended to take into account market maker competition and the spread. It is shown that with a … spread the Kyle model has a Nash equilibrium also with two market makers, not only with three or more, as shown in earlier … research. The spread is endogenized, and two testable predictions of the model are generated. The first is that the spread is …

The Kyle (1985) model is extended to take into account market maker competition and the spread. It is shown that with a … spread the Kyle model has a Nash equilibrium also with two market makers, not only with three or more, as shown in earlier … research. The spread is endogenized, and two testable predictions of the model are generated. The first is that the spread is …

Analysis of the difference between the lowest and second lowest bids, or bid-spread, in a ‘lowest wins’ auction is of … security; and a means of providing some insight into the consequences of non-traditional auction arrangements. Bid-spread …, the percentage bid-spread is consistent with the assumption that bids are entirely random, being drawn from a lognormal …