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credit market competition is intense. The latter emerges when banks exercise market power. Thus, competition is beneficial to …
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A substantial body of research suggests that it is difficult to account for all of the asset price volatility in terms of news. This paper attempts to explain the excess volatility puzzle as a consequence of competitive interaction between market participants. We develop a model of competitive...
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Most firms face some form of competition in product markets. The degree of competition a firm faces feeds back into its … competition affects the prices of options on equity and naturally leads to an inverse relationship between equity returns and … empirical support for this finding and demonstrate the importance of accounting for product market competition when explaining …
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