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We develop a model of spatial competition to explore how changes in the market structure affect the incentives of banks … reveal that the relaxation of competition distorts banks' incentives to invest in screening …
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informational problems. We show that, as a consequence of this trade-off, more intense competition in unregulated segments of the … can lead to a softer merger policy when competition is weaker. …
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their privately observed soft information is positive or negative. Competition affects the investment in learning the …
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