In the Glosten and Milgrom (1985) model, dealer spreads will tend to be smaller when arrivals of

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In the Glosten and Milgrom (1985) model, dealer spreads will tend to be smaller when arrivals of buy and sell orders are balanced. Why do such balanced order arrivals tend to produce smaller dealer spreads?

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Financial Trading And Investing

ISBN: 9780323909556

3rd Edition

Authors: John Teall

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Question Posted: Nov 18, 2023 07:14 AM

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In the Glosten and Milgrom (1985) model, dealer spreads will tend to be smaller when arrivals of

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Financial Trading And Investing

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