@booklet {vulkan-mvnteocm2001,
	title = {Markets Versus Negotiations: the Emergence of Centralized Markets},
	howpublished = {Discussion Papers},
	year = {2001},
	month = {2},
	abstract = {We study the incentives of privately informed traders who have access to two forms of trade: direct negotiations with a small number of buyers and sellers (or decentralized trade), and centralized markets with a relatively large number of buyers and sellers. We show that "weak" trader types (that is, buyers with a high willingness to pay and sellers with low costs) will prefer to trade through centralized markets. This leads to a complete unraveling of direct negotiations, so that ultimately, all "serious" buyers and sellers opt for trading through the centralized market. Once this happens, no trader can pro{\textquoteright}{\textquoteright}{\textasciimacron}tably trade through direct negotiations.},
	url = {/files/db239.pdf},
	author = {Vulkan, Zvika Neeman and Nir}
}
