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strategy spaces that prevented overbidding. In this paper, we allow bidders access to their complete strategy sets and show … overbidding. These new equilibria improve expected efficiency relative to equilibria with restricted strategy spaces and lead to …
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Garbade and Silber (1979) demonstrate that an asset will be liquid if it has (1) low price volatility and (2) a large number of public investors who trade it. Although these results match nicely with common notions of liquidity, one key element is missing: liquidity also depends on (3) an asset...
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