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How has market microstructure literature evolved over years?

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Market microstructure literature has evolved significantly over the years. Initially, the focus was on the U.S. and a few European countries, neglecting other regions like Asia, which have unique market structures and trading behaviors . The advent of technology, regulation changes, and globalization has transformed financial markets, leading to a surge in interest in market microstructure . Studies have utilized tools like experimental economics and agent-based modeling to understand how well microeconomic assumptions align with real-world markets, highlighting the importance of rationality in achieving market efficiency . Additionally, the emphasis on market structure, price discovery, information flows, and transaction costs has paved the way for high-frequency trading strategies, aiding investors in optimizing transactions and generating profits .

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Book•DOI Market microstructure in emerging and developed markets : price discovery, information flows, and transaction costs H. Kent Baker, Halil Kiymaz - Show less +1 more 16 Aug 2013 4 Citations	Market microstructure literature has evolved significantly, driven by technology, regulation, and globalization. It focuses on granular market transactions, price discovery, information flows, transaction costs, and high-frequency trading strategies.
Open access•Journal Article•DOI Role of Market Microstructure in Price Convergence: A Meta Analysis 15 Jun 2023-Perennial journal of history	Market microstructure literature has evolved by utilizing tools like experimental economics and agent-based modeling to study market efficiency, rationality, and the impact of different market structures on price convergence.
Open access•Journal Article•DOI Role of Market Microstructure in Price Convergence: A Historic Meta-Review 15 Jun 2023-Perennial journal of history	Market microstructure literature has evolved by utilizing experimental economics and agent-based modeling to assess the real-world market's approximation to theoretical competitive equilibrium, highlighting the limitations of Zero Intelligence agents.
Journal Article•DOI Equity Market Structure and the Persistence of Unsolved Problems: A Microstructure Perspective Robert A. Schwartz, James Ross, Deniz Ozenbas - Show less +2 more 14 Jun 2022-The Journal of Portfolio Management	Market microstructure literature has evolved since the 1975 Securities Acts Amendments, focusing on integrating orders efficiently to improve market structure, reduce impact costs, and enhance price discovery.

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