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  • © 2001

Competition for Order Flow and the Theory of Global Games

The impact of alternative trading systems on securities markets

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Table of contents (6 chapters)

  1. Front Matter

    Pages I-XXXIV
  2. Introduction

    • Jutta A. Dönges
    Pages 1-8
  3. Alternative Trading Systems

    • Jutta A. Dönges
    Pages 9-58
  4. Theory of Global Games

    • Jutta A. Dönges
    Pages 103-148
  5. Competition for Order Flow as a Global Game

    • Jutta A. Dönges
    Pages 149-206
  6. Summary of Results and Further Research

    • Jutta A. Dönges
    Pages 207-213
  7. Back Matter

    Pages 215-273

About this book

The proliferation of alternative trading systems has increased competition for order flow in financial markets significantly and renewed the debate on fragmentation versus consolidation. Market microstructure models that analyze liquidity-based intermarket competition typically exhibit multiple equilibria, making it difficult to determine whether fragmentation or consolidation of order flow will occur.

Jutta A. Dönges applies the recently developed theory of global games that
reduces multiplicity of equilibria in coordination games to a model of intermarket competition and demonstrates the existence of a unique equilibrium under fairly general conditions. The author investigates whether and under which circumstances alternative trading systems, particularly crossing networks, can co-exist with established markets or even replace them and explores how the introduction of a crossing network affects both
monopolistic and competitive dealer markets and the market participants'
behavior.

About the author

Dr. Jutta A. Dönges promovierte am Fachbereich Wirtschaftswissenschaften der Universität Frankfurt am Main. Sie ist seit mehreren Jahren in der Investment Banking Division einer amerikanischen Investment Bank tätig.

Bibliographic Information

  • Book Title: Competition for Order Flow and the Theory of Global Games

  • Book Subtitle: The impact of alternative trading systems on securities markets

  • Authors: Jutta A. Dönges

  • DOI: https://doi.org/10.1007/978-3-663-07734-3

  • Publisher: Deutscher Universitätsverlag Wiesbaden

  • eBook Packages: Springer Book Archive

  • Copyright Information: Springer Fachmedien Wiesbaden 2001

  • Softcover ISBN: 978-3-8244-7426-4Published: 27 September 2001

  • eBook ISBN: 978-3-663-07734-3Published: 17 April 2013

  • Edition Number: 1

  • Number of Pages: XXXIV, 273

  • Number of Illustrations: 16 b/w illustrations

  • Topics: Business and Management, general

Buy it now

Buying options

eBook USD 49.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book USD 69.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Other ways to access