Cartea, Álvaro and Jaimungal, Sebastian, Modeling Asset Prices for Algorithmic and High Frequency Trading (December 8, 2010). Applied Mathematical Finance, Vol. 20, No. 6, 2013.

By the same token, an algo might quote a wide bid-offer spread and another algo entering the same market might do the same to avoid punishment for deviating from the norm. In these circumstances, ...