There is a large variety of instruments that consumers can use for making payments. The use of electronic payment instruments, such as payment cards and online transfers, has considerably increased over the past decades. Yet, consumers still heavily rely on cash and other paper-based means of...

The overreaching methodology of my Ph.D. thesis is to substitute noise traders with rational traders. I do so by considering liquidity asymmetry between informed trader and uninformed traders. Liquidity asymmetry creates a motive for trade. Under this new setup, I study the impact of asset trade...