The Search Theory of OTC Markets

55 Pages Posted: 16 Jun 2020

See all articles by Pierre-Olivier Weill

Pierre-Olivier Weill

University of California, Los Angeles; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: June 2020

Abstract

I review the recent literature that applies search-and-matching theory to the study of Over-the-Counter (OTC) financial markets. I formulate and solve a simple model in order to illustrate the typical assumptions and economic forces at play in existing work. I then offer thematic tours of the literature and, in the process, discuss avenues for future research.

Keywords: Asset Pricing, OTC markets, search frictions

JEL Classification: G11, G12, G21

Suggested Citation

Weill, Pierre-Olivier, The Search Theory of OTC Markets (June 2020). CEPR Discussion Paper No. DP14847, Available at SSRN: https://ssrn.com/abstract=3628167

Pierre-Olivier Weill (Contact Author)

University of California, Los Angeles ( email )

Box 951477
Los Angeles, CA 90095-1477
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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