Discussion paper

DP14847 The search theory of OTC markets

I review the recent literature that applies search-and-matching theory to the study of Over-the-Counter (OTC) financial markets. I formulate and solve a simple model in order to illustrate the typical assumptions and economic forces at play in existing work. I then offer thematic tours of the literature and, in the process, discuss avenues for future research.


Weill, P (2020), ‘DP14847 The search theory of OTC markets‘, CEPR Discussion Paper No. 14847. CEPR Press, Paris & London. https://cepr.org/publications/dp14847