Rose-Acker-Man Susan

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  • Braid Tina Fine, Douglas Kel Holtz-Eakin, +4 authors Mike Wood-Ford
  • 2006
Liquidity considerations will limit the number of markets in a competitive economy. Welfare implications are ambiguous. Since liquidity is a positive externality, there may be too little liquidity per market at a noncooperative equilibrium and too many markets compared to the surplus-maximizing market structure. But liquidity is also self-reinforcing. Given(More)
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