TY - JOUR T1 - Competition Between High and Low-Accuracy Trading Platforms JF - The Journal of Trading SP - 79 LP - 85 DO - 10.3905/jot.2009.4.2.079 VL - 4 IS - 2 AU - Erik Benrud Y1 - 2009/03/31 UR - https://pm-research.com/content/4/2/79.abstract N2 - This article develops a model in which trading platforms compete with the fee charged for trading and the price accuracy of trades. The model has a stable equilibrium, which demonstrates how an increase in the number of traders or an increase in their desire for accuracy increases the levels of accuracy offered by the platforms and that this accuracy becomes more dispersed. An increase in the cost of increasing accuracy lowers accuracy for both firms, and the accuracies become less dispersed. Additional analysis demonstrates how exogenous shifts affect the fees and profits.TOPICS: Statistical methods, exchanges/markets/clearinghouses ER -