The article discusses how differences in information and trading needs can lead to market fragmentation. Dealers and investors interact based on their knowledge and preferences, leading to either a centralized or fragmented market structure. When dealers have more information than investors, trading tends to be fragmented. This fragmentation is more likely when investors have similar valuations and prefer market power over a larger market. The model also suggests that as prices become more informative, dealers trade more aggressively, affecting market power and leading to fragmented markets. This study also touches on price dispersion and liquidity in these market structures.