Bernhardt, Dan; Dvoracek, Vladimir; Hughson, Eric; … - In: Review of Financial Studies 18 (2005) 4, pp. 1343-1368
We argue that competition between dealers in a classic dealer market is intertemporal: A trader identifies a particular dealer and negotiates a final price with only the intertemporal threat to switch dealers imposing pricing discipline on the dealer. In this kind of market structure, we show...