Equilibrium Bid-Ask Spreads in Markets with Multiple Assets

The paper models the specialist system as a monopolistically competitive market. The demand for the asset is found by solving the investor's portfolio problem with transactions costs. These demand equations are used as inputs in the specialist's price-setting problem. It is shown that equi...

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Bibliographische Detailangaben

Veröffentlicht in:	The Review of economic studies 1991-04, Vol.58 (2), p.237-257
1. Verfasser:	Hagerty, Kathleen
Format:	Artikel
Sprache:	eng
Schlagworte:	Bid prices Economic theory Endowments Financial portfolios Idiosyncratic risk Investors Market prices Markups Monopoly Transaction costs
Online-Zugang:	Volltext
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