Intermediaries can help reduce trading frictions in markets where finding trading partners is costly. The study looks at a model with different agents choosing between using intermediaries or searching for partners themselves. When there is a monopolistic intermediary, traders with high gains prefer to use them, while those with lower gains search for partners. With competition among intermediaries, prices converge to a fair equilibrium. This shows that competing intermediaries can replace the traditional market auctioneer. The study also highlights coordination challenges in models of intermediation.