Simultaneous multilateral search

• Main Authors: GLEBKIN, Sergei, YUESHEN, Bart Zhou, SHEN, Ji
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Request-for-quote; over-the-counter market; search; bargaining; Finance and Financial Management; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7284; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8283/viewcontent/SimultaneousMultiSearch_sv__1_.pdf
• Institution: Singapore Management University

This paper studies simultaneous multilateral search (SMS) in over-the-counter markets: When searching, a customer simultaneously contacts several dealers and trades with the one offering the best quote. Higher search intensity (how often one can search) improves welfare, but higher search capacity (...