Library Header Image
LSE Research Online LSE Library Services

Auction and dealership markets: what is the difference?

Pagano, Marco and Röell, Ailsa (1991) Auction and dealership markets: what is the difference? Financial Markets Group Discussion Papers (125). Financial Markets Group, The London School of Economics and Political Science, London, UK.

[img] Text (dp125) - Published Version
Download (117kB)


In the 1980s, the practice of listing stocks in several exchanges has become more frequent, and as a result investors have gained access to alternative trading systems to exchange the same stock. For instance, French, Italian and Spanish "blue chip" stocks can now be traded in their domestic exchanges, organised as auction markets, as well as in the London SEAQ International market, which is a dealership market. The key difference is that while in auction markets all outstanding orders are transacted at a single price via a centralized mechanism, in dealership markets they are placed with individual dealers, who execute them at preset quoted prices.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 1991 The Authors
Divisions: Financial Markets Group
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HG Finance
JEL classification: D - Microeconomics > D4 - Market Structure and Pricing > D44 - Auctions
G - Financial Economics > G0 - General > G00 - General
Date Deposited: 17 May 2023 08:54
Last Modified: 16 May 2024 12:30

Actions (login required)

View Item View Item


Downloads per month over past year

View more statistics