Maureen O'Hara is the Robert W. Purcell Professor of Finance at the Johnson Graduate School of Management at Cornell University. She holds a Ph. D. in Finance from North-western University. Professor O'Hara has also taught at the London Business School and the University of California at Los Angeles. She received the Young Scholar Recognition Award from the American Association of University Women in 1986. She is a director of both the American Finance Association and the Western Finance Association. Professor O'Hara is the co-editor of the Journal of Financial Intermediation and is an associate editor at numerous finance journals.

• About the Author vForeword ix1. Markets and Market-Making 12. Inventory Models 153. Information-Based Models 534. Strategic Trader Models I: Informed Traders 895. Strategic Trader Models II: Uninformed Traders 1296. Information and the Price Process 1537. Market Viability and Stability 1798. Liquidity and the Relationships between Markets 2159. Issues in Market Performance 251References 273Index 283

Maureen O'Hara is the Robert W. Purcell Professor of Finance at the Johnson Graduate School of Management at Cornell University. She holds a Ph. D. in Finance from North-western University. Professor O'Hara has also taught at the London Business School and the University of California at Los Angeles. She received the Young Scholar Recognition Award from the American Association of University Women in 1986. She is a director of both the American Finance Association and the Western Finance Association. Professor O'Hara is the co-editor of the Journal of Financial Intermediation and is an associate editor at numerous finance journals.

• About the Author vForeword ix1. Markets and Market-Making 12. Inventory Models 153. Information-Based Models 534. Strategic Trader Models I: Informed Traders 895. Strategic Trader Models II: Uninformed Traders 1296. Information and the Price Process 1537. Market Viability and Stability 1798. Liquidity and the Relationships between Markets 2159. Issues in Market Performance 251References 273Index 283