dealers who were contacted by the investor use this information in the interdealer market. Increasing the number of contacted … dealers lowers markups through competition but increases the dealers' costs of providing the asset through information leakage …

information. Over time, agents are privately informed by bids and o ffers. Investors diff er with respect to information quality …, including initial information precision, and also in terms of market\connectivity," the expected frequency of their bilateral … trading opportunities. We characterize endogenous information acquisition and show how learning externalities aff ect …

order book model. We find that while the presence of HFT always improves market quality under symmetric information, under … asymmetric information this is the case only if competition between high-frequency traders is sufficiently strong. While HFT does …