/ask prices? To address this question, we extend Spulber's (1996a) search model with buyers, sellers, and price setting dealers to …/ask price or they can search for a better price in the dealer market. We show that the entry of a monopolist market maker can be … search for better prices in the dealer market. Dealers act as a "competitive fringe" that undercut the bid/ask spread charged …

of capital, variable search intensity, variable match separation, or efficiency wages. We also propose two possible …