Abbassi, Puriya; Bräuning, Falk; Schulze, Niels - 2017
We study the role of bargaining power and outside options for the pricing of over-the-counter interbank loans using a … market. We find that lender banks with greater bargaining power over their borrowers charge higher interest rates, while the … it crucially depends on their limited bilateral bargaining power, leading to a persistent segmentation of prices in the …