This study seeks to fill a gap in the research on the behavior of entrepreneurs, their decisions to develop their firms independently or with venture capitalists, and the relation to their abilities and to the value in making that ability known, even at a cost. Information asymmetry exists when...

The price of proprietary market data, data with low latency and with complete depth of book, sold by exchanges has risen dramatically in the previous decade. In fact, in October, 2018, the SEC failed to approve a requests by NASDAQ and NYSE-ARCA to raise the price of their data. The paper...

This paper investigates the effect of exchange-traded funds' (ETF) activity on the short-run informational efficiency of their underlying securities. We find that ETF activity increases short-run informational efficiency for stocks with weak information environments. The increase in...

We examine the welfare costs of informed trade in a new sequential trade model with elastic uninformed traders. Welfare losses occur when the liquidity costs of executing a trade exceed the potential gains from the trade. With long-lived private information, more informed traders lead to better...

In an environment with noise traders and informed traders trading on news, we model competition in schedules by liquidity suppliers quoting on a limit order book. We show that there is an equilibrium featuring quoters using mixed strategies; each quoter employs a step function, offering the same...

We study a dynamic limit order market with a finite number of strategic liquidity suppliers who post limit orders. Their limit orders are hit by either news (i.e. informed) traders or noise traders. We show that repeatedly playing a mixed strategy equilibrium of a certain static game is a...