have existing inventories of assets similar to those being traded. We show that these inventories may lead to prices that … information dissemination. Competition may amplify the run-up by inducing buyers to enter loss-making trades at high prices to … seller competition from delivering the Bertrand outcome, in which prices match sellers’ valuations. We discuss both empirical …

analyze the impact that transactions credit has on interest rates and prices. We find that the availability of credit … velocity. As a result, prices become quite flexible and liquidity effects are dampened. Thus, adding another medium of exchange … whose use is calibrated to U.S. data has important implications for economic behavior in a segmented markets model. …

variety of real world markets, asking prices have received little attention in the academic literature. We construct an …In many markets, sellers advertise their good with an asking price. This is a price at which the seller is willing to … characterization of this equilibrium and use it to explore the positive implications of this pricing mechanism for transaction prices …

leverage is high, trade may become impossible (a "market freeze"). Their analysis predicts a pattern of trade in which prices … and trade volume first increase, and then markets break down. The authors use their model to discuss implications for … regulatory intervention in illiquid markets. ; Superseded by Working Paper 12-8 …

prices and volumes first increase, and then markets break down. Moreover, the presence of competing buyers may amplify the … prices. We show that when traders’ initial leverages are moderate, inventories increase price and trade volume (a market “run … increased-price effect. We discuss implications for regulatory intervention in illiquid markets. …

Empirical evidence suggests that movements in international relative prices (such as the real exchange rate) are large …