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.
2018
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].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11590/340297
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