Abstract
As presented in Chapter III, existing theoretical models of intermarket competition exhibit multiple self-fulfilling expectations equilibria which involve both fragmentation and consolidation of order flow. These models do not determine whether markets will co-exist, leading to a fragmentation of order flow, or whether trading tends to concentrate on one market, as it is unclear which set of self-fulfilling beliefs will prevail.
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© 2001 Springer Fachmedien Wiesbaden
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Dönges, J.A. (2001). Competition for Order Flow as a Global Game. In: Competition for Order Flow and the Theory of Global Games. Deutscher Universitätsverlag, Wiesbaden. https://doi.org/10.1007/978-3-663-07734-3_5
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DOI: https://doi.org/10.1007/978-3-663-07734-3_5
Publisher Name: Deutscher Universitätsverlag, Wiesbaden
Print ISBN: 978-3-8244-7426-4
Online ISBN: 978-3-663-07734-3
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