Conference Proceeding Article
This paper focuses on a market intermediary’s role of liquidity provision to support on-demand computing in a dynamic market trading environment. We outline a framework in which a number of distributed agents sell and buy assets based on their changing utilities over time and a service provider acts as a market maker performing market intervention. We present benchmark models based on socially optimal liquidity provision and a brokerage framework. We then examine the benefits and the dealer’s incentives to provide market liquidity.
Market microstructure, market dynamics, intermediary, liquidity
Computer Sciences | Management Information Systems
Information Systems and Management
Proceedings of the 39th Annual Meeting of the Decision Sciences Institute 2008: Baltimore, 22-25 November 2008
Decision Sciences Institute
City or Country
Market Liquidity Provision for On-Demand Computing. (2008). Proceedings of the 39th Annual Meeting of the Decision Sciences Institute 2008: Baltimore, 22-25 November 2008. 1231-1236. Research Collection School Of Information Systems.
Available at: http://ink.library.smu.edu.sg/sis_research/1868
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