We propose a new model of trading in over-the-counter markets. Dealers accumulate inventories by trading with end-investors and trade among each other to reduce their inventory holding costs. Core dealers use a more efficient trading technology than peripheral dealers, who are heterogeneously connected to core dealers and trade with each other bilaterally. Connectedness affects prices and allocations if and only if the peripheral dealers' aggregate inventory position differs from zero. Price dispersion increases in the size of this position. The model generates new predictions about the effects of dealers' connectedness and dealers' aggregate inventories on prices.

中文翻译：

---

库存管理、经销商的联系和场外交易市场的价格

我们提出了一种新的场外交易模式。经销商通过与终端投资者的交易积累库存，并相互交易以降低他们的库存持有成本。核心交易商使用比外围交易商更高效的交易技术，外围交易商与核心交易商异质连接，双边交易。当且仅当外围经销商的总库存头寸不为零时，连通性会影响价格和分配。此头寸规模的价格分散会增加。该模型生成关于经销商连通性和经销商总库存对价格影响的新预测。