Wave Systems Corp. (fka WAVXQ)

[lugan]

I have to question some of the "logic" in this argument:

"Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market."

IMHO if there is a shortage of shares to buy or sell than the price should fall or rise in order to entice owners to meet the market demand... especially in this age of computerized trading.
How in the world does a market maker make such decisions when hundreds of thousands of shares are being transacted in seconds. We are in the hands of programmed trading. Does programmed trading even pay attention to the availability of shares?

I would appreciate it if anybody has a good line on academic literature that addresses this.