| 讲座简介： | The paper explores the equilibria in a stylized search model where investors’ trading needs are due to time-varying valuations. There always exists a trivial equilibrium where no investor chooses to trade. When search cost is small, there exists another equilibrium in which traders with medium trading needs serve the role of intermediary in the market. However, when search cost is large, there exists the other equilibrium where all traders stay outside the market after trade. When search friction is sufficiently small, only the second equilibrium is stable, in the sense that investors’ trading behavior is robust to some exogenous perturbations on the side of their trading partners. |
