| Author: | Mendelson, H. |
| Title: | Consolidation, fragmentation, and market performance. |
| Journal: | Journal of Financial and Quantitative Analysis
1987 : JUN, VOL. 22:2, p. 189-207 |
| Index terms: | MARKETS |
| Language: | eng |
| Abstract: | This article investigates the impact of market consolidation or fragmentation on its performance, studying four different models of exchange: (i) a consolidated clearing house, (ii) fragmented clearing house, (iii) a monopoly dealer market and (iv) an interdealer market. The effects of the market mechanism on the expected quantity traded, the price variance which individuals face, the expected gains from trade and the exchange implementation costs are compared. |
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