PT - JOURNAL ARTICLE AU - Erik Benrud TI - Competition Between High and Low-Accuracy Trading Platforms AID - 10.3905/jot.2009.4.2.079 DP - 2009 Mar 31 TA - The Journal of Trading PG - 79--85 VI - 4 IP - 2 4099 - https://pm-research.com/content/4/2/79.short 4100 - https://pm-research.com/content/4/2/79.full AB - 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