Please use this identifier to cite or link to this item: http://hdl.handle.net/2123/7419

Title: Trading Floors as Separating Devices
Authors: Bose, Gautam
Economics
Issue Date: Feb-1999
Publisher: Department of Economics
Series/Report no.: 02
Abstract: Traders with specific characteristics operating in a pairwise exchange market may prefer to meet other traders with similar (or complimentary) characteristics, while other categories of traders may not have such preferences. The existence of the second type imposes a negative externality on the first. Under conditions which are not very restrictive, establishing a trading floor designated for the former type induces the two types of traders to separate themselves –with one type trading on the floor and the other trading on the ‘street’. Separation may require assessing a fee for entry. The consequences for efficiency are mixed.
URI: http://hdl.handle.net/2123/7419
ISBN: 1864870427
Department/Unit/Centre: Economics
Appears in Collections:Working Papers - Economics

Files in This Item:

File Description SizeFormat
ECON 1999-02.pdf7.83 MBAdobe PDFView/Open

Items in Sydney eScholarship Repository are protected by copyright, with all rights reserved, unless otherwise indicated.