The article explores how dealers' price quotes and size quotes can provide valuable information about market liquidity in a competitive securities market. Size quotes, which indicate the number of shares dealers are willing to buy or sell at certain prices, are found to be more informative about market liquidity than bid-ask spreads. The researchers argue that size quotes reveal important market characteristics that bid-ask spreads alone cannot capture. The model developed in the study generates testable predictions that can help clarify key aspects of market liquidity.