24 septembre 2019, 11h00–12h30
Toulouse
Salle MS001
Economic Theory Seminar
Résumé
We study information acquisition in dealer markets. We rst identify a one-sided strategic complementarity in information acquisition: the more informed traders are, the larger market makers' gain from becoming informed. We then derive the equilib- rium pattern of information acquisition and examine the implications of our analysis for market liquidity and price discovery.