SELECTED WORKS

of Jaime Luque

Publications

Cross-listed Securities and Multiple Exchange Memberships

B.E. Journal of Theoretical Economics (2018)
Jaime Luque
Marta Faias
DOWNLOAD
ABSTRACT

The previous literature on general equilibrium has assumed that all traders belong to a single market. However, traders often participate in more than one exchange to diversify their portfolios. Moreover, there is evidence that the security listings of exchanges overlap. Our model captures these facts: there are multiple exchanges, the same security is listed in different exchanges, and traders can belong to more than one exchange. We show that, in the presence of convex transaction costs, there exists an equilibrium, and that individual demand is a continuously differentiable function in prices.

KEYWORDS

multiple exchange memberships, cross-listings, equilibrium existence, demand differentiability

DISCIPLINES

Economic Theory and Finance

PUBLICATION DATE

January, 2018

CITATION INFORMATION

Marta Faias and Jaime Luque. "Cross-listed Securities and Multiple Exchange Memberships" B.E. Journal of Theoretical Economics Iss. 18 (2018) p. 1 - 12
Available at: http://works.bepress.com/luque/29/

CREATIVE COMMONS LICENSE

Creative Commons License
Creative Commons License This work is licensed under a Creative Commons CC_BY-NC-ND International License.

The information collected on this form is recorded on a computerised file by EESC ESCP for Customer Relationship Management, direct marketing, recruitment and selection of candidates. This information will be stored for 3 years and used by the marketing, recruitment and admissions departments.
You may exercise your rights under the General Data Protection Regulation (GDPR) including your rights to access your personal data and rectify it by contacting:
EESC ESCP Business School
3 Rue Armand Moisant 75015 Paris FRANCE

dataprotection@escp.eu