  We consider an optimal investment problem to maximize expected utility of the
terminal wealth, in an illiquid market with search frictions and transaction
costs. In the market model, an investor's attempt of transaction is successful
only at arrival times of a Poisson process, and the investor pays proportional
transaction costs when the transaction is successful. We characterize the
no-trade region describing the optimal trading strategy. We provide asymptotic
expansions of the boundaries of the no-trade region and the value function, for
small transaction costs. The asymptotic analysis implies that the effects of
the transaction costs are more pronounced in the market with less search
frictions.
