Economics of Financial Networks

Economics of Financial Networks and Electronic Trading

Last Updated: 4/10/2007. Copyright © 1995-2007, N. Economides.

This is a collection of papers on financial exchange networks, electronic trading, call markets, and market liquidity. The main issue of these papers is the micro-structure of financial exchange. Many of them discuss the extent to which market liquidity affects the efficiency of trading, including bid-ask spreads and transaction costs. A number of the papers below discuss alternative trading structures that improve the efficiency of financial exchange. To increase liquidity and improve the efficiency of the exchange (and for other reasons) Electronic Call Market Trading proposes a three-times-a-day call market to run in parallel with the continuous market.

To read an abstract of any paper, click the word "abstract" next to the title that interests you. To download the entire document, click the word "postscript" next to the title. You can also download the entire (postscript) document in compressed form by clicking on "zipped. Finally, by clicking on "acrobat," you can download the entire document in ".pdf Acrobat" format that is readable, searchable, and printable on any printer when you use Adobe's Acrobat reader. The Acrobat reader is available free of charge. You can also search any document on this server for any word.

  • Commentary on Antitrust Economics of Credit Card Networks, by Nicholas Economides, Federal Reserve Bank of St. Louis Review, November- December 1995, pp. 60-63. [Acrobat ~45Kb] [Postscript ~266Kb] [Zipped ~92Kb]
  • The Division of Markets is Limited by the Extent of Liquidity, by Nicholas Economides and Aloysius Siow, American Economic Review, vol. 78, no. 1 (March 1988), pp. 108-121. [Abstract] [Acrobat ~1.8Mb]
  • Electronic Call Market Trading, by Nicholas Economides and Robert Schwartz, Journal of Portfolio Management, vol. 21, no. 3, pp. 10-18, (Spring 1995). [Abstract] [Acrobat ~74Kb] [Postscript ~127Kb] [Zipped ~32Kb]
  • Equilibrium Fee Schedules in a Monopolist Call Market, by Nicholas Economides and Jeff Heisler, Discussion Paper no. EC-94-15, Stern School of Business, N.Y.U. [Abstract] [Acrobat ~360Kb] [Postscript ~1025Kb] [Zipped ~190Kb]
  • Equity Trading Practices and Market Structure: Assessing Asset Managers' Demand for Immediacy, by Nicholas Economides and Robert A. Schwartz, Financial Markets, Institutions & Instruments, vol. 4, no. 4, (November 1995) pp. 1-46. [Abstract] [Acrobat ~207Kb] [Postscript ~655Kb] [Zipped ~121Kb]
  • How to Enhance Market Liquidity, by Nicholas Economides, in Robert Schwartz (ed.) Global Equity Markets, Irwin Professional. New York: 1995. [Abstract] [Acrobat ~40Kb] [Postscript ~78Kb] [Zipped ~19Kb]
  • Making the Trade: Equity Trading Practices and Market Structure - 1994, by Nicholas Economides and Robert A. Schwartz, TraderForum, Institutional Investor. [Abstract] [Acrobat ~187Kb] [Postscript ~624Kb] [Zipped ~115Kb]
  • Network Economics with Application to Finance, by Nicholas Economides, Financial Markets, Institutions & Instruments, vol. 2, no. 5, (December 1993), pp. 89-97. [Abstract] [Acrobat ~35Kb] [Postscript ~90Kb] [Zipped ~22Kb]
    The Impact of the Internet on Financial Markets by Nicholas Economides, Journal of Financial Transformation, vol. 1, no. 1 (2001), pp. 8-13. [Acrobat ~51Kb]
    A Parimutuel Market Microstructure for Contingent Claims Trading, by Jeffrey Lange and Nicholas Economides, Discussion Paper no. EC-03-18, Stern School of Business, NYU [Abstract] [Acrobat ~562Kb]
  • The Political Economy of Branching Restrictions and Deposit Insurance: A Model of Monopolistic Competition of Small and Large Banks, by Nicholas Economides, R. Glenn Hubbard and Darius Palia, Journal of Law and Economics, vol. XXXIX (October 1996), pp. 667-704. [Abstract] [Acrobat ~2111Kb]
  • Federal Deposit Insurance: Economic Efficiency or Politics? by Nicholas Economides, R. Glenn Hubbard and Darius Palia, Regulation, vol. 22, no. 3 (September 1999). [Acrobat ~21Kb]
  • Proposal to the Bank of Greece on the Organization of Primary and Secondary Markets in Greek State Bills, Notes, and Bonds, by Nicholas Economides. [Abstract] [Acrobat ~92Kb] [Postscript ~305Kb] [Zipped ~51Kb]
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