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Competition for Order Flow and the Theory of Global Games: The Impact of Alternative Trading Systems on Securities Markets

Competition for Order Flow and the Theory of Global Games: The Impact of Alternative Trading Systems on Securities Markets

Paperback

EconomicsManagement

ISBN10: 3824474263
ISBN13: 9783824474264
Publisher: Springer Nature
Published: Sep 27 2001
Pages: 273
Weight: 0.81
Height: 0.65 Width: 5.83 Depth: 8.27
Language: German
The proliferation of alternative trading systems has increased competition for order flow in financial markets significantly and renewed the debate on fragmentation versus consolidation. Market microstructure models that analyze liquidity-based intermarket competition typically exhibit multiple equilibria, making it difficult to determine whether fragmentation or consolidation of order flow will occur.

Jutta A. Dönges applies the recently developed theory of global games that

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