Risk Aversion, Transparency, and Market Performance
基于Biais(1993)的做市商模型，发现市场碎片化时投资者获得更优执行价格并增加投资；透明度提高（集中化）可能损害流动性和福利。
ABSTRACT Using a model of market making with inventories based on Biais (1993), we find that investors obtain more favorable execution prices, and they hence invest more, when markets are fragmented. In our model, risk‐averse dealers use less aggressive price strategies in more transparent markets (centralized) because quote dissemination alleviates uncertainty about the prices quoted by other dealers and, hence, reduces the need to compete aggressively for order flow. Further, we show that the move toward greater transparency (centralization) may have detrimental effects on liquidity and welfare.