Market structure and pricing

• Dynamic Competition in Negotiated Price Markets

  Staff Working Paper 2020-22 Jason Allen, Shaoteng Li

  Repeated interactions between borrowers and lenders create the possibility of dynamic pricing: lenders compete aggressively with low prices to attract new borrowers and then raise their prices once borrowers have made a commitment. We find such pricing patterns in the Canadian mortgage market.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial services, Market structure and pricing JEL Code(s): D, D4, G, G2, G21, L, L2

• Trading on Long-term Information

  Staff Working Paper 2020-20 Corey Garriott, Ryan Riordan

  Investors who trade based on good research are said to be the backbone of stock markets: They conduct research to discover the value of stocks and, through their trading, guide financial prices to reflect true value. What can make their job difficult is that high-speed, short-term traders could use machine learning and other technologies to infer when informed investors are trading.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial markets, Market structure and pricing JEL Code(s): G, G1, G14, G2, G20, L, L1

• The Market for Acquiring Card Payments from Small and Medium-Sized Canadian Merchants

  Staff Discussion Paper 2020-5 Angelika Welte, Jozsef Molnar

  This note uses industry data and a unique dataset of small and medium-sized merchants to provide insights into the acquirer-merchant market in Canada.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Financial services, Market structure and pricing, Payment clearing and settlement systems JEL Code(s): C, C2, D, D2, E, E4, E42