We examine the determinants of entry into Italian local banking markets during the period 1991-2002 and build a simple model in which the probability of branching in a new market depends on the features of both the local market and the potential entrant. Econometric findings show that banks are...

This paper looks at why local markets have become increasingly dominated by multi-market firms, particularly in the banking industry, where deregulation in the early 1990s lead to extensive branch network expansion. To understand the implications of this profusion of multi-market banks, I...