Vayanos, Dimitri; Wang, Tan - London School of Economics (LSE) - 2004
We develop a search-based model of asset trading, in which investors of different horizons can invest in two identical … assets. The asset markets are partially segmented: buyers can search for only one asset, but can decide which one. We show … that there exists a "clientele" equilibrium where one market has more buyers and sellers, lower search times, higher …