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Using a simple model of two-sided markets, we show that, in the social optimum, platform pricing leads to an inherent cost recovery problem. This result is driven by the positive externality of participation that users on either side of the market exert on the opposite side. The contribution of...
Persistent link: https://www.econbiz.de/10005101818
In this paper we present a theoretic framework to analyse pricing structures in debit card schemes. Card-holders value debit cards only to the extent that these are accepted by retailers, while retailers in turn benefit from a widespread usage of cards. This points to the two-sided nature of the...
Persistent link: https://www.econbiz.de/10005101905
-world developments have spawned a huge newscholarly literature on central bank communicationmostly empirical, and almost all of it … and powerful part of the central bank's toolkit since it has the ability to move financial markets, to enhance the …
Persistent link: https://www.econbiz.de/10005106644
stronger competition implies significantly lower spreads between bank and market interest rates for most loan market products … pass-through of market rates to bank interest rates, we likewise find that banks tend to price their loans more in … stronger, we observe larger bank spreads (implying lower bank interest rates) on current account and time deposits. This would …
Persistent link: https://www.econbiz.de/10005106652
advantage drives banks to seek out specific markets. Using detailed, bilateral data of bank ownership for a large number of …
Persistent link: https://www.econbiz.de/10005106662
In two-sided markets, one widely observes skewed pricing strategies, in which the price mark-up is much higher on one side of the market than the other. Using a simple model of two-sided markets, we show that, under constant elasticity of demand, skewed pricing is indeed pro?t maximizing. The...
Persistent link: https://www.econbiz.de/10004970699
Measuring bank performance solely on the basis of profitability conveys significant information about past performance …
Persistent link: https://www.econbiz.de/10010562428
by assessing the relation between bank size and market power. We use an extended version of the Panzar-Rosse (P-R) model … that allows bank size to affect market power. Based on a large sample of more than 18,000 banks in 101 countries comprising … more than 112,000 bank-year observations, we show that market power varies with bank size. Large banks have substantially …
Persistent link: https://www.econbiz.de/10005021844
indicates that the reduction in bank lending during the crisis was at least partly caused by stricter bank screening and …
Persistent link: https://www.econbiz.de/10008587049
This study contributes to the empirical evidence on the lending channel in the Netherlands using individual bank data … the lending channel theory. A contribution of this study is that it gives evidence that the monetary policy impact on bank … lending also depends on the market segment in which a bank is active. The evidence suggests that the lending channel is not …
Persistent link: https://www.econbiz.de/10005021861