Colliard, Jean-Edouard; Foucault, Thierry - C.E.P.R. Discussion Papers - 2011
We study competition between a dealer (OTC) market and a limit order market. In the limit order market, investors can choose to be "makers" (post limit orders) or "takers" (hit limit orders) whereas in the dealer market they must trade at dealers' quotes. Moreover, in the limit order market,...