schemes affect liquidity provision and asset prices. Investors face a trade-off between risk and return. At the benefit of a … liquidity provision to force traders to trade at a lower price. By contrast, bonus caps make traders value the asset less than … investors. This should encourage liquidity provision and decrease prices. In contrast to these predictions, we find that under …

. Uninformed traders act as liquidity providers. They place the highest number of limit orders and end up with the market return …. -- asymmetric information ; liquidity ; trading strategies ; limit order markets ; experiment …