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https://hdl.handle.net/10419/64828
Kompletter Metadatensatz
DublinCore-Feld | Wert | Sprache |
---|---|---|
dc.contributor.author | Reitz, Stefan | en |
dc.contributor.author | Schmidt, Markus A. | en |
dc.contributor.author | Taylor, Mark P. | en |
dc.date.accessioned | 2012-10-01 | - |
dc.date.accessioned | 2012-10-11T14:44:23Z | - |
dc.date.available | 2012-10-11T14:44:23Z | - |
dc.date.issued | 2012 | - |
dc.identifier.uri | http://hdl.handle.net/10419/64828 | - |
dc.description.abstract | Though unambiguously outperforming all other financial markets in terms of liquidity, foreign exchange trading is still performed in opaque and decentralized markets. In particular, the two-tier market structure consisting of a customer segment and an interdealer segment to which only market makers have access gives rise to the possibility of price discrimination. We provide a theoretical foreign exchange pricing model that accounts for market power considerations and analyze a database of the trades of a German market maker and his cross section of end-user customers. We find that the market maker generally exerts low bargaining power vis-á-vis his customers. The dealer earns lower average spreads on trades with financial customers than commercial customers, even though the former are perceived to convey exchange-rate-relevant information. From this perspective, it appears that market makers provide interdealer market liquidity to end-user customers with cross-sectionally differing spreads. | en |
dc.language.iso | eng | en |
dc.publisher | |aKiel Institute for the World Economy (IfW) |cKiel | en |
dc.relation.ispartofseries | |aKiel Working Paper |x1794 | en |
dc.subject.jel | F31 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | foreign exchange | en |
dc.subject.keyword | market microstructure | en |
dc.subject.keyword | pricing behavior | en |
dc.title | Financial intermediation and the role of price discrimination in a two-tier market | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 726717592 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
dc.identifier.repec | RePEc:zbw:ifwkwp:1794 | en |
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