This demand is inelastic to the price in the core market because peripheral dealers faceno uncertainty on their final position after trading at date 2, in contrast to core dealers.12Equation (9) shows that connected peripheral dealers who traded with other peripheraldealers (at date 1) have no reason to trade in the core market since, for these dealers,zi1= 0. Thus, the only connected peripheral dealers who optimally trade with core dealersare those who did not trade with other peripheral dealers (for these dealers, zi1= zi0). Let∆ be the net aggregate inventory of these dealers. We deduce from (9) that the aggregatenet demand of peripheral dealers in the core market is: