Rust, John; Hall, George - Cowles Foundation for Research in Economics, Yale University - 2001
/ask prices? To address this question, we extend Spulber's (1996a) search model with buyers, sellers, and price setting dealers to … exchange, and prices are private in the sense that price quotes can only be obtained through direct contact (e.g. telephone …/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 …
