Finding 5385Emerging EvidenceValidation V0
The study reveals that gains from trade are endogenously allocated, and increased liquidity may significantly harm welfare, as narrower spreads and lower price impacts occur when trader arrivals are imbalanced.
82%Confidence
1Evidence objects
v1Version
DraftStatus
Evidence trail
Supporting82% linkage confidence
The study reveals that gains from trade are endogenously allocated, and increased liquidity may significantly harm welfare, as narrower spreads and lower price impacts occur when trader arrivals are imbalanced.
key_findings bullet 2 · key_findings
Inspect source: Limit order book spreads, depth, and market efficiency in a general equilibrium model →This Finding was extracted from the configured corpus. It is versioned, traceable, and may evolve through editorial review or new corpus evidence.