Ben Lester
Institution
Federal Reserve Bank of Philadelphia
PhD Year
2007
Phone
215-574-6276
Benjamin.Lester@phil.frb.org
FTG Membership
Member
Website
http://www.benjaminrlester.com
Featured Work
Aug 6, 2018
Market-making with Search and Information Frictions
We develop a dynamic model of trading through market-makers that incorporates two canonical sources of illiquidity: trading (or search) frictions, which imply that market-makers have some amount of market power; and information frictions, which imply that market-makers face some degree of adverse selection. We use this model to study the effects of various technological innovations and regulatory initiatives that have reduced trading frictions in over-the-counter...
