Terry Hendershott
Associate Professor (with tenure)
Haas School of Business, University of California at Berkeley
hender AT haas.berkeley.edu 510 643-0619

Click on the title below to download an Acrobat (pdf) file of the paper. Click here for my cv.

Publications:

• A Comparison of Trading and Non-Trading Mechanisms for Price Discovery (with Michael Barclay), forthcoming Journal of Empirical Finance.
• How to Divide the Possession of a Football? (with Yeon-Koo Che), forthcoming Economic Letters.
• Order Consolidation, Price Efficiency, and Extreme Liquidity Shocks (with Michael Barclay and Charles Jones), Journal of Financial and Quantitative Analysis 43 (March 2008), 93-121.
• Market Maker Inventories and Stock Prices (with Mark Seasholes), American Economic Review (P&P) 97 (May 2007), 210-214.
• Automation versus Intermediation: Evidence from Treasuries Going Off the Run (with Michael Barclay and Kenneth Kotz), Journal of Finance 61 (October 2006), 2395-2414.
• A Model of Direct and Intermediated Sales (with Jie Zhang), Journal of Economics & Management Strategy 15 (Summer 2006), 279-316.
• Island Goes Dark: Transparency, Fragmentation, and Regulation (with Charles Jones), Review of Financial Studies 18 (Fall 2005), 743-793.
• Trade Through Prohibitions and Market Quality (with Charles Jones), Journal of Financial Markets 8 (February 2005), 1-23.
• Liquidity Externalities and Adverse Selection: Evidence from Trading After Hours (with Michael Barclay), Journal of Finance 59 (April 2004), 681-710.
• Price Discovery and Trading After Hours (with Michael Barclay), Review of Financial Studies 16 (Winter 2003), 1041-1073.
• Competition Among Trading Venues: Information and Trading on Electronic Communications Networks (with Michael Barclay and Tim McCormick), Journal of Finance 58 (December 2003), 2637-2666.
• Electronic Trading Systems in Financial Markets, IEEE-IT Professional 5 (Jul/Aug 2003), 10-14.
• The Future of Virtual Malls (with Patric Hendershott and Robert Hendershott), Real Estate Finance 18 (Spring 2001), 25-32.
• Crossing Networks and Dealer Markets: Competition and Performance (with Haim Mendelson), Journal of Finance 55 (October 2000), 2071-2115.
• Bundling and Optimal Auctions of Multiple Products (with Christopher Avery), Review of Economic Studies 67 (July 2000), 483-497.
• Will the Internet Reduce the Demand for Mall Space? (with Patric Hendershott and Robert Hendershott), Real Estate Finance 17 (Spring 2000), 41-46.

Books:

• Handbook of Economics and Information Systems, Editor, Elsevier. Click here for the Amazon link. Click here for the: Table of Contents and Introduction.

Working papers:

• Does Algorithmic Trading Improve Liquidity? (with Charles Jones and Albert Menkveld).
• Speed and Stock Market Quality: The NYSE’s Hybrid (with Pam Moulton; previous version titled “The Shrinking New York Stock Exchange Floor and the Hybrid Market”).
• The Price of Latency (with David Easley and Tarun Ramadorai; previous version titled “The Impact of Trading Technology: Evidence from the 1980 NYSE Post Upgrades”).
• Time Variation in Liquidity: The Role of Market Maker Inventories and Revenues (with Carole Comerton-Forde, Charles Jones, Mark Seasholes, and Pam Moulton; combines two previous working papers: “Market Maker Inventories and Liquidity” and “Market Maker Revenues and Stock Market Liquidity”).

Others:

• An Economic View of Information Systems (with Krishnan Anand), Introduction to a Special Issue on Information Systems and Economics, Decision Support Systems (May 2006), 683-687.
• Preface to the Focus Theme Section: 'Financial Market Engineering' (with Dirk Neumann, Robert Schwartz, Bruce Weber, and Christof Weinhardt), Electronic Markets 16 (May 2006), 98-100.
• Some thoughts on financial market regulation and the SEC’s proposed Regulation NMS (published as an op-ed/commentary in the Financial Times on July 21, 2004).
• Should the Outcome of a Coin Flip Mean So Much in NFL Overtime? Bid for the Ball (with Jonathan Berk), Wall Street Journal Online, December 22, 2003.

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