We find that competition from payday lenders leads depository institutions to raise overdraft fees and reduce the … illuminate competition and pricing frictions in the large, yet largely unstudied, small-dollar loan market. -- Payday credit … ; overdraft credit ; competition ; adverse selection …

We find that competition from payday lenders leads depository institutions to raise overdraft fees and reduce the … illuminate competition and pricing frictions in the large, yet largely unstudied, small-dollar loan market …

This paper studies bank competition with borrower adverse selection. In the model, expected non-performing loan costs … competition. I show that with asymmetric costs, bank market shares are always inversely related to their efficiency, and that bank … are high when credit is granted in booms, when risk free rates are low, or when competition is strong. I prove that full …

We show that competing firms relax overall competition by lowering future barriers to entry. We illustrate our findings …-period profits. This dampens competition for serving the first-period market. …