FOUCAULT, Thierry; PARLOUR, Christine A. - HEC Paris (École des Hautes Études Commerciales) - 1999
We develop a model in which two profit maximizing exchanges compete for IPO listings. They choose the listing fees paid … firms differ in how they value a decrease in trading costs. Hence, in equilibrium, the exchanges obtain positive expected … profits by charging different trading fees and different listing fees. As a result, firms that list on different exchanges …