Liquidity provision in a limit order book without adverse selection

► We develop a dynamic model of a limit order market populated with liquidity traders. ► Traders have only private values in a setting without adverse selection. ► The equilibrium bid-ask spread is increasing in the dispersion in private values across traders. ► Extending the life span of limit orders reduces the average bid-ask spread in equilibrium. ► The frequency of market order submissions is increasing in the dispersion in liquidity traders' private values.