This paper studies bank competition with borrower adverse selection. In the model, expected non-performing loan costs … are high when credit is granted in booms, when risk free rates are low, or when competition is strong. I prove that full … competition is suboptimal due to this last effect; that more competition improves the transmission of monetary policy, and that …

A standard macroeconomic model based on monopolistic competition (Dixit-Stiglitz) does not account for the strategic … price stickiness. (2) The real effect of monetary policy under duopolistic competition is larger than that in a Dixit …

competition between stores makes their prices complementary, so that firms face strong penalties for setting prices far away from …

Price-setting models with monopolistic competition and costs of changing prices exhibit coordination failure: in … sticky-price models may more generally depend on the kind of imperfect competition assumed …

that the SSM reduced competition for SSM banks in countries affected by the sovereign debt crisis. Otherwise, the impact of … the SSM was limited or competition increased. Furthermore, our results suggest that anti-competitive side effects of the …