Competition between exchanges: A research agenda
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Cantillon-Yin-2010-revised.pdf
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Author(s) •
Cantillon, Estelle
Yin, Pai-Ling
Date Issued
December 2010
Journal
International Journal of Industrial Organization
Publisher
Elsevier
Citation
Cantillon, Estelle and Yin, Pai-Ling. “Competition Between Exchanges: A Research Agenda.” International Journal of Industrial Organization 29, no. 3 (May 2011): 329–336. © 2010 Elsevier B.V.
Version
Author's final manuscript
Abstract
This paper describes open research questions related to the competition and market structure of financial exchanges and argues that only a combination of industrial organization and finance can satisfactorily attack these questions. Two examples are discussed to illustrate how the combination of these two approaches can significantly enrich the analysis: the “network externality puzzle”, which refers to the question of why trading for the same security is often split across trading venues, and the impact of the multi-sided character of financial exchanges on pricing and profitability.
MIT Department
Sloan School of Management
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Creative Commons Attribution-NonCommercial-NoDerivs License
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DOI of Published Version
https://doi.org/10.1016/j.ijindorg.2010.12.001