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Digital
Library of the European Council for Modelling and Simulation |
Title: |
Intermediary Activities On
Decentralized Financial Markets |
Authors: |
Daniel Havran, Balazs Arpad Szucs |
Published in: |
(2017).ECMS 2017 Proceedings
Edited by: Zita Zoltay
Paprika, Péter Horák, Kata Váradi, Péter Tamás Zwierczyk, Ágnes Vidovics-Dancs, János Péter Rádics European Council for Modeling and Simulation. doi:10.7148/2017 ISBN:
978-0-9932440-4-9/ ISBN:
978-0-9932440-5-6 (CD) 31st European Conference on Modelling and Simulation, Budapest, Hungary, May 23rd
– May 26th, 2017 |
Citation
format: |
Daniel
Havran, Balazs Arpad Szucs (2017). Intermediary Activities On Decentralized
Financial Markets, ECMS 2017 Proceedings Edited by: Zita
Zoltay Paprika, Péter Horák, Kata Váradi, Péter Tamás Zwierczyk, Ágnes Vidovics-Dancs, János Péter Rádics European Council for Modeling and Simulation. doi: 10.7148/2017-0074 |
DOI: |
https://doi.org/10.7148/2017-0074 |
Abstract: |
Financial
intermediary institutions often compete and cooperate with each other at the
same time. These financial actors provide services to their investors, and
enter into transactions with them. Moreover, these players very often trade
with each other to mitigate their market risks related to their exposures against
their clients. Decentralized inter-dealer markets differ from the Walrasian textbook markets in three characteristics:
transactions are bilateral, market players form a network, market
players possess diverse bargaining power. We develop and simulate a
single-period model to describe the benefits of those dealers on the network,
who not only mitigate the risk, but connect other
dealers on these markets. |
Full
text: |