When It's Not The Only Game in Town: The Effect of Bilateral Search on the Quality of a Dealer Market
通过实验研究，在允许双边搜索交易的情况下，做市商的利润大幅下降，但价格发现效率并未降低。
ABSTRACT We report results from experimental asset markets with liquidity traders and an insider where we allow bilateral trade to take place, in addition to public trade with dealers. In the absence of the search alternative, dealer profits are large—unlike in models with risk‐neutral, competitive dealers. However, when we allow traders to participate in the search market, dealer profits are close to zero. Dealers compete more aggressively with the alternative trading avenue than with each other. There is no evidence that price discovery is less efficient when the specialists are not the only game in town.