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On competition for listings

Author

Listed:
  • Beladi, Hamid
  • Oladi, Reza
  • Tay, Nicholas S.P.

Abstract

We construct a model whereby stock exchanges take a new role as an information intermediary, notably absent in their roles. We show that exchanges differentiate themselves at subgame perfect equilibrium and will not race to the top or to the bottom.

Suggested Citation

  • Beladi, Hamid & Oladi, Reza & Tay, Nicholas S.P., 2012. "On competition for listings," Economics Letters, Elsevier, vol. 114(3), pages 315-318.
    • Handle: RePEc:eee:ecolet:v:114:y:2012:i:3:p:315-318
    DOI: 10.1016/j.econlet.2011.09.006
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    References listed on IDEAS

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    1. Doidge, Craig & Karolyi, G. Andrew & Stulz, Rene M., 2004. "Why are foreign firms listed in the U.S. worth more?," Journal of Financial Economics, Elsevier, vol. 71(2), pages 205-238, February.
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    8. Yates, Andrew J., 1997. "Hotelling and the New York stock exchange," Economics Letters, Elsevier, vol. 56(1), pages 107-110, September.
    9. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    10. Chemmanur, Thomas J. & Fulghieri, Paolo, 2006. "Competition and cooperation among exchanges: A theory of cross-listing and endogenous listing standards," Journal of Financial Economics, Elsevier, vol. 82(2), pages 455-489, November.
    11. Tay, Nicholas S.P. & Oladi, Reza, 2011. "Listings from the emerging economies: An opportunity for reputable stock exchanges," International Review of Economics & Finance, Elsevier, vol. 20(3), pages 388-394, June.
    12. Marjit, Sugata, 2007. "Trade theory and the role of time zones," International Review of Economics & Finance, Elsevier, vol. 16(2), pages 153-160.
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    More about this item

    Keywords

    Information intermediary; Reputation capital; Listing requirements;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • G1 - Financial Economics - - General Financial Markets
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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    Access and download statistics

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