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Persistent link: https://www.econbiz.de/10010209102
In this paper we develop an empirical two-stage model of price competition for the banking industry that incorporates the choice of capacity in the form of new branches. This is achieved by supplementing the customary two-equation framework (demand plus first-order condition in the loan market)...
Persistent link: https://www.econbiz.de/10010580949
In this paper we assess the impact of multimarket contact of banks on their market power by means of a simultaneous equation model, in which the divergence of price from marginal cost is a function of multimarket linkages. The model is estimated using aggregate data from the Italian regions for...
Persistent link: https://www.econbiz.de/10011048447
The existing empirical evidence suggests that there is a “winner’s curse” for banks entering new markets. Actually, it has been assessed that de novo banks generally experience higher bad loans rates than mature banks for about ten years. We investigate whether this persistence has...
Persistent link: https://www.econbiz.de/10011096643