Market microstructure and intermediation

Article Abstract:

Intermediation provides the basic market microstructure of most economies. Contrary to belief that intermediation signifies market failure, firms intermediate in market-making activities that make economies work, such as setting prices and clearing markets, coordinating transactions and monitoring performance. These activities of economic and financial intermediaries have important implications for microeconomic analysis. The significance of intermediation in the US economy's value added suggests that market-making activities be treated on par with production of goods in public policy.

Economic aspects, Exchange, Institutional market

---

Consignment contracting

Article Abstract:

The study investigated the factors that influence traders to employ consignment contracts in some market environment as against dealer intermediation. Results revealed that optimistic sellers resort to consignment contract when valuations are considered subjective while traders hesitated to use dealer intermediation when expected net sales revenue is smaller than their opportunity cost. However, the study concluded that consignment and dealer intermediation can be employed at the same time to varying needs in a specific market.

Research, Marketing, Contracts, Consignment, Forms (Law)

---

A comparative analysis of merchant and broker intermediation

Article Abstract:

The difference between merchant and broker intermediary contracts is analyzed. Intermediation commences with an agreement in contractual form. Intermediaries, whether merchants or brokers, negotiate until all demands are met and trade with buyers is consumated. Merchant intermediaries work best under conditions of low demand variance and high response to effort. Brokers of intermediary contracts function best when demand has large variance, regardless of effort exerted.

Banking industry

Similar abstracts:

• Abstracts: Market structure and innovation: a survey of the last twenty years. A household production model of paid labor, household work and child care
• Abstracts: Credit market imperfections and the separation of ownership from control
• Abstracts: Tests of microstructural hypotheses in the foreign exchange market. Just another day in the inter-bank foreign exchange market
• Abstracts: The factors determining the profitability of international airlines: some econometric results. Firm resources and joint ventures: what determines zero-sum versus positive-sum outcomes?
• Abstracts: Ownership structure and corporate liquidity policy. Real estate and corporate valuation: An asset pricing perspective

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.