Economics of Macro Issues 7th Edition by Roger LeRoy Miller,Daniel Benjamin

Exercise 3

Currently the first "bid" that matches an "ask" gets the trade (and the profits). Suppose the rules on stock market exchanges were changed so that all bids arriving within (say) a second of each other were grouped in a batch and the winning bid was selected at random from among all of the best bids in the batch. How would this change the incentive to invest in speed? What would be the costs of implementing such a "batch" system?