Payments for Order Flow on Nasdaq
构建了一个纳斯达克模型，包含做市商通过报价和直接付款两种方式竞争订单流，并分析经纪商的小额交易执行方式，发现传统模型无法解释纳斯达克的制度特征和实证证据。
We present a model of Nasdaq that includes the two ways in which marketmakers compete for order flow: quotes and direct payments. Brokers in our model can execute small trades through a computerized system, preferencing arrangements with marketmakers, or vertical integration into market making. The comparative statics in our model differ from those of the traditional model of dealer markets, which does not capture important institutional features of Nasdaq. We also show that the empirical evidence is inconsistent with the traditional model, which suggests that preferencing and vertical integration are important components in understanding Nasdaq.