Retail investors are an essential part of the financial markets and they provide stability to the markets by providing liquidity and helping in price discovery. For markets to function efficiently, a healthy retail investor landscape is essential. However, with the advent of HFT and...

We analyze a two-country model of trade in both legitimate and counterfeit products. Domestic firms own trademarks and establish reputations for delivering high-quality products in a steady-state equilibrium. Foreign suppliers export legitimate low-quality merchandise and counterfeits of...