作者: Haoxiang Zhu
DOI: 10.1093/RFS/HHR140
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摘要: This paper offers a fully rational, dynamic model of opaque over-the-counter markets. An investor searches for an attractive price by visiting multiple dealers in any chosen sequence, including repeat contacts. The do not observe negotiations elsewhere the market, order Under stated conditions, contact with dealer reveals investor’s reduced outside options and worsens quote. When fundamental value asset is uncertain, market opacity uncertain could exacerbate adverse selection lead to inefficient breakdown.