In such a setting, an initial ask price posted by the seller would be irrelevant.
We can, however, estimate the relationship between the ask price and the level of the highest outstanding (i.
In such a setting, sellers with high ask prices will reject higher offers than sellers with low ask prices; thus, the ask price will be positively correlated with the highest outstanding offer at any given point in time.
The empirical section of the article first examines the incidence of offers for our sample of computers and assesses whether the level of the ask price affects the number of offers that a computer receives.
The next part of the article examines the relationship between the ask price for a given computer, and the level of the highest offer outstanding when we observe it.
The ask price is not binding and is typically high relative to any objective assessment of the value of the computer.
The set of information available to the buyer therefore consists of the listed characteristics of the computer, the date on which the computer was listed, the ask price, and the date and level of any previous offers submitted.
In addition to increased market visibility, NASDAQ offers Orange National Bancorp the advantage of multiple market makers that compete to offer the best bid and ask prices
, as opposed to a single specialist on the floor of a stock exchange.
McCaig, President and Chief Executive Officer, said that Grand Union's entry into the NASDAQ National Market provides brokers and others with immediate access to the best bid and ask prices and other information about the Company's shares throughout the trading day.
In addition to increased market visibility, NASDAQ offers Grand Union the advantage of multiple market makers that compete to offer the best bid and ask prices as opposed to a single specialist on the floor of a stock exchange.