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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

    as
    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.
    2. Beladi, Hamid & Oladi, Reza, 2011. "An elementary proposition on technical progress and non-traded goods," Journal of Mathematical Economics, Elsevier, vol. 47(1), pages 68-71, January.
    3. Oladi, Reza & Beladi, Hamid & Chau, Nancy, 2008. "Multinational corporations and export quality," Journal of Economic Behavior & Organization, Elsevier, vol. 65(1), pages 147-155, January.
    4. Yates, Andrew J., 1997. "Hotelling and the New York stock exchange," Economics Letters, Elsevier, vol. 56(1), pages 107-110, September.
    5. Chakrabarti, Avik, 2003. "A theory of the spatial distribution of foreign direct investment," International Review of Economics & Finance, Elsevier, vol. 12(2), pages 149-169.
    6. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
    7. Cihák, Martin & Podpiera, Richard, 2008. "Integrated financial supervision: Which model?," The North American Journal of Economics and Finance, Elsevier, vol. 19(2), pages 135-152, August.
    8. 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.
    9. Van Long, Ngo & Riezman, Raymond & Soubeyran, Antoine, 2005. "Fragmentation and services," The North American Journal of Economics and Finance, Elsevier, vol. 16(1), pages 137-152, March.
    10. 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.
    11. Marjit, Sugata, 2007. "Trade theory and the role of time zones," International Review of Economics & Finance, Elsevier, vol. 16(2), pages 153-160.
    12. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
    13. Bond, Eric, 2005. "Market linkages with fragmented production," The North American Journal of Economics and Finance, Elsevier, vol. 16(1), pages 119-135, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Information intermediary; Reputation capital; Listing requirements;

    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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