This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

Journal of Economic Perspectives: Vol. 10 No. 3 (Summer 1996)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

JEP - All Issues


Market Microstructure and Intermediation

Article Citation

Spulber, Daniel F. 1996. "Market Microstructure and Intermediation." Journal of Economic Perspectives, 10(3): 135-152.

DOI: 10.1257/jep.10.3.135

Abstract

This paper emphasizes the important role played by intermediaries in the economy, including wholesalers, retailers, and financial firms. The paper defines an intermediary as an economic agent that purchases from suppliers for resale to buyers or that helps buyers and sellers meet and transact. Intermediaries coordinate transactions and provide the institutions of exchange that constitute market microstructure. Intermediaries set prices, manage inventories, coordinate exchange, and provide information through guarantees and delegated monitoring. These crucial activities help to explain how markets attain equilibrium prices and quantities. The paper suggests that the study of intermediation should be incorporated into mainstream economic analysis.

Article Full-Text Access

Full-text Article (Complimentary)

Authors

Spulber, Daniel F. (Kellogg Graduate School of Management, Northwestern U)

JEL Classifications

L11: Production, Pricing, and Market Structure; Size Distribution of Firms
L14: Transactional Relationships; Contracts and Reputation; Networks

Comments

View Comments on This Article (0) | Login to post a comment


Journal of Economic Perspectives


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

JEP - All Issues

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us