Jantschgi, Simon; Nax, Heinrich H.; Pradelski, Bary S. R.; … - 2022 - Revised version, September 2022
Transaction costs are omnipresent in markets yet are often omitted in economic models. We show that their presence can … fundamentally alter incentives and welfare in markets in which the price equates supply and demand. We categorize transaction costs … into two types. Asymptotically uninfluenceable transaction costs-such as fixed and price fees-preserve the key asymptotic …