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A Theory of Intraday Patterns: Volume and Price Variability

Anat R. Admati; Paul Pfleiderer

Stanford University

Review of Financial Studies 1988

This article develops a theory in which concentrated-trading patterns arise endogenously as a result of the strategic behavior of liquidity traders and informed traders. Our results provide a partial explanation for some of the recent empirical findings concerning the patterns of volume and price variability in intraday transaction data.

DOI
10.1093/rfs/1.1.3
Volume
1 (1)
Pages
3-40
Language
en
Export
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