This paper develops a dynamic trading framework that determines jointly agents' counterparties and transaction prices as part of the equilibrium, instead of assuming that agents match and bargain exogenously. We show that because of limited information in the decentralized market, the roles of...

We analyze the impact of a regulatory reform in a novel framework that jointly determines banks’ bilateral networks and platform access. In our model, banks use their bilateral connections to obtain indirect access to the platform, which saves direct entry costs but results in risk...