Events

Why Centralized Markets are Not Stable

  • 6 Mar 2018

    12:30-14:15, Butler Room, Nuffield College

  • Economic Theory Lunchtime Workshop   Add to Calendar
Speaker: Rakesh Vohra

George A. Weiss and Lydia Bravo Weiss University Professor, Penn Economics (University of Pennsylvania)

This event is part of the Economic Theory Lunchtime Workshop series

Abstract: Centralized markets reduce the costs of search for buyers and sellers. Their ‘thickness’ increases the chance of order execution at competitive prices. In spite of the incentives to consolidate, some markets, securities markets and online advertising being the most notable, are fragmented into multiple trading venues. We argue that fragmentation is an inevitable feature of any centralized market except in certain special circumstances  (joint work with Ahman Peivandi).

The Economic Theory Lunchtime Workshops are convened by Meg Meyer