This paper studies the coexistence of two competing mechanisms in the same market, where one follows the posted-offer rule and the other one incorporates a double-auction mechanism. We explore this coexistence within a sports betting example in which bettors are free to choose between a bookie...

This paper offers a dynamic noisy rational expectations model of the foreign exchange market with two dimensions of information asymmetry. Some investors are assumed to have public information, the rest are assumed to possess both public and private information. This paper demonstrates why...

We find that intermediary risk appetite plays an important role in the availability of dealer hedging services provided to real economy firms. We show that dealers intermediate the swap exposures of different clienteles and hedge some residual risk in the futures market. Using novel data on WTI...