Endogenous intermediation in over-the-counter markets

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Liquidity: A New Monetarist Perspective (2017, background): “…with a combination of analytic and computational methods.28 Molico (2006) instead lets A = [0∞), and studies the case of fiat currency, allowing the supply to evolve 27Recent related work on intermediation includes Lester et al. (2013), Babus and Hu (2015), Shen et al. (2015) and Uslu (2015).”
Finding the core: Network structure in interbank markets (2014, unknown): “Babus [3] applies a related model to financial markets and also finds a star network, which is claimed to reproduce a qualitative feature of subset of core banks that intermediate between other banks.”
Where the Risks Lie: A Survey on Systemic Risk (2017, unknown): “…more stylized “star networks”) have attracted the attention of later theoretical work (see, for instance, Castiglionesi and Navarro, 2011; Babus, 2015; Babus and Hu, 2015; and Farboodi, 2015).10 A different approach is to use more intricate models and calibrate them on real-world networks, as done…”
Systemic Risk in Financial Networks: A Survey (2020, unknown): “Babus & Hu (2017) show that when partnerships between banks not only have a trading function but also an informational function then there are economies of scale in intermediation and the equilibrium network has a star structure.”