The search theory of OTC markets

Pierre-Olivier Weill
Working Paper 27354
DOI 10.3386/w27354
Issue Date

I review the recent literature that applies search-and-matching theory to the study of Over-the-Counter (OTC) financial markets. I formulate and solve a simple model in order to illustrate the typical assumptions and economic forces at play in existing work. I then offer thematic tours of the literature and, in the process, discuss avenues for future research.

Related

Topics

Financial Economics
Portfolio Selection and Asset Pricing

Programs

Asset Pricing
Economic Fluctuations and Growth

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