Market microstructure
Subtitle: intermediaries and the theory of the firm
By: Daniel F. Spulber.
Publisher: Cambridge University Press
Published: 1998
Place of publication: Cambridge; New York
Language: eng
Number of pages: 374
Subjects: Industrial organization (Economic theory); Securities.; Stock exchanges.; Microeconomics.
Description: This book presents a theory of the firm based on its economic role as an intermediary between customers and suppliers. Professor Spulber demonstrates how the intermediation theory of the firm explains firm formation by showing why firms arise in a market equilibrium with costly transactions. In addition, the theory helps explain how markets work by showing how firms select market-clearing prices.

Models of intermediation and market microstructure from microeconomics and finance shed considerable light on the formation and market-making activities of firms. The intermediation theory of the firm is compared with existing economic theories of the firm, including neoclassical, industrial-organization, transaction-cost, and principal-agent models.
Notes: Includes bibliographical references (p. 353-368) and index.