Park, Kwangwoo; Pennacchi, George - In: Review of Financial Studies 22 (2009) 1, pp. 1-40
A model of multimarket spatial competition is developed where small, single-market banks compete with large, multimarket banks (LMBs) for retail loans and deposits. Consistent with empirical evidence, LMBs are assumed to set retail interest rates uniformly across markets, have different...