Title

Security Brokerage Markets under Price Uncertainty

Publication Type

Journal Article

Publication Date

1992

Abstract

This paper develops a model of security broker behavior under price uncertainty. The model examines the process of matching orders and the determinants of equilibrium brokerage commission rates. Institutional arrangements, search efficiency, execution costs, volume, risk, and the unit price of the security are shown to affect equilibrium brokerage commission rates. Some stylized facts of security brokerage are explained.

Discipline

Business

Research Areas

Finance

Publication

Journal of Financial Intermediation

Volume

2

Issue

4

First Page

422

Last Page

448

ISSN

1042-9573

Identifier

10.1016/1042-9573(92)90012-3

Publisher

Elsevier