Publication Type

Conference Proceeding Article

Version

acceptedVersion

Publication Date

11-2008

Abstract

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.

Keywords

Market microstructure, market dynamics, intermediary, liquidity

Discipline

Computer Sciences | Management Information Systems

Research Areas

Information Systems and Management

Publication

Proceedings of the 39th Annual Meeting of the Decision Sciences Institute 2008: Baltimore, 22-25 November 2008

First Page

1231

Last Page

1236

ISBN

9781615670321

Publisher

Decision Sciences Institute

City or Country

Atlanta, GA

Share

COinS