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dc.contributor.authorLadley, Daniel
dc.contributor.authorLensberg, Terje
dc.contributor.authorPalczewski, Jan
dc.contributor.authorSchenk-Hoppé, Klaus Reiner
dc.date.accessioned2013-07-30T07:43:37Z
dc.date.available2013-07-30T07:43:37Z
dc.date.issued2013-07
dc.identifier.urihttp://hdl.handle.net/11250/170381
dc.description.abstractTrading skills are highly rewarded in practice but largely ignored in theoretical models of financial markets. This paper demonstrates the importance of skills by exploring their interaction with market fragmentation and market stability. We consider a computational model where traders' abilities to accurately price assets are endogenous. In contrast to models that do not consider skills, we find that centralising markets can lead to poorer price discovery and less resilience to shocks because it increases the equilibrium proportion of unskilled traders.no_NO
dc.language.isoengno_NO
dc.publisherNorwegian School of Economics. Department of Financeno_NO
dc.relation.ispartofseriesWorking paper;2013:7
dc.subjectskillsno_NO
dc.subjectmarket fragmentationno_NO
dc.subjectprice discoveryno_NO
dc.subjectmarket resilienceno_NO
dc.titleFragmentation and stability of marketsno_NO
dc.typeWorking paperno_NO
dc.subject.nsiVDP::Social science: 200::Economics: 210no_NO
dc.subject.jelD47
dc.subject.jelD83
dc.subject.jelG11


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