impact of competition on bank orientation - i.e., the choice of relationship based versus transactional banking - and bank … industry specialization. We empirically investigate the impact of interbank competition on bank branch orientation and …. We find that bank branches facing stiff local competition engage relatively more in relationship-based lending but …

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. …