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I am not sure if this is the correct site to ask this, if not I apologize.

I have noticed some markets that lack in liquidity, and wonder why market makers in these markets cannot provide liquidity on the same scale as in other markets.

I would appreciate some links to academic literature, general market making books etc...So I can learn ways to provide liquidity to illiquid markets and various general market making techniques.

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  • $\begingroup$ A standard on Market Microstructure is Harris: amazon.com/… . I'm not sure how it treats illiquid markets though. $\endgroup$ – Olaf Jan 21 '16 at 11:40
  • $\begingroup$ Anna Karenina: "Happy families are all alike; every unhappy family is unhappy in its own way." Translation: the reason a market is illiquid are very many, probably an infinite number of causes. The academic literature on market making is not going to be very helpful in understanding those causes; it assumes them away. $\endgroup$ – noob2 Jan 21 '16 at 16:34

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