In recognition of the design of Rule 611 of RegNMS that precludes fee washout, we introduce endogenous information acquisition into an asymmetric information model of the limit order book with access fees and continuous pricing. Informed traders optimally adjust the likelihood of an informed...

With the use of a laboratory experiment, we show the effects of co-investments on coverage, competition and price collusion in regulated network industries. On the one hand, co-investments turn out not to be a significant driver of new infrastructure investments beyond the level achieved by...

Several regulatory authorities have recently allowed competing network operators to co-invest in network infrastructure. With the use of a laboratory experiment, we investigate the impact of co-investments on competition in regulated network industries, particularly in comparison to unilateral...