Although it is widely accepted that the dissemination of prices and quotes plays a central role in the functioning of markets, the nature of that role is the subject of much controversy and ignorance. This chapter surveys the current state of knowledge on the subject as examined in the economics literature. The chapter is composed of two sections. The first discusses the informational role of prices in equilibrium models. These models attempt to explain how goods are allocated and prices are determined in an economy. The next section focuses on market microstructure literature, a body of work that examines how the detailed structural elements of markets affect their performance. The effects of disseminating different amounts of price and quote information are examined in a range of contexts.
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