Lawrence R. Glosten

Lawrence R. Glosten is an economist and finance expert known for his work on financial markets and market microstructure—the ways trading occurs and prices are set. He is best known for developing the Glosten-Milgrom model, which explains how information and trader behavior influence bid-ask spreads (the difference between buy and sell prices). His research helps us understand how markets function efficiently and how various factors impact price discovery. Glosten’s insights are influential in both academic finance and practical trading, providing a deeper understanding of how information asymmetry affects market dynamics.