Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Thursday, December 15, 2011

Competition between Exchanges: A research Agenda

Posted by D. Daniel Sokol

Estelle Cantillon and Pai-Ling Yin provide Competition between Exchanges: A research Agenda.

ABSTRACT: This paper describes open research questions related to the competition and market structure of financial exchanges and argues that only a combination of industrial organization and finance can satisfactorily attack these questions. Two examples are discussed to illustrate how the combination of these two approaches can significantly enrich the analysis: the “network externality puzzle”, which refers to the question of why trading for the same security is often split across trading venues, and the impact of the multi-sided character of financial exchanges on pricing and profitability.

| Permalink

TrackBack URL for this entry:

Listed below are links to weblogs that reference Competition between Exchanges: A research Agenda:


Post a comment