In this paper, we extend the model presented by Duffie et al. [5], assuming that the agents pay the transaction costs, when trading assets in over the counter market. First of all, we determine a formula of equi- librium price, depending on transaction costs, and analyze the formula when vanishing search frictions. Moreover, we measure the impact on equilibrium price of the different transaction cost politics, depending to one who loads to pay them.
Flore, F., Cenci, M. (2018). Transaction cost politics in over the counter markets. APPLIED MATHEMATICAL SCIENCES, 12(23), 1137-1156 [10.12988/ams.2018.87103].
Transaction cost politics in over the counter markets
FLORE, FEDERICO;Cenci, Marisa
2018-01-01
Abstract
In this paper, we extend the model presented by Duffie et al. [5], assuming that the agents pay the transaction costs, when trading assets in over the counter market. First of all, we determine a formula of equi- librium price, depending on transaction costs, and analyze the formula when vanishing search frictions. Moreover, we measure the impact on equilibrium price of the different transaction cost politics, depending to one who loads to pay them.File in questo prodotto:
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