We consider two agency-theory-based structural models and a reduced form model of bank inefficiency. The two structural models assume that the inefficiencies and quantities are sequentially and simultaneously determined, respectfully. The reduced form model assumes that inefficiency of a bank...

Enhancing competitiveness is a popular target in economic policy making - not only at the national, but at the regional level as well despite neither generally accepted definition nor any strong agreement on how to measure it. In this chapter we discuss the conceptual underpinnings of why it is...

We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete in a differentiated loan market, hold reserves against liquidity shocks, and refinance in the interbank market. A merger creates an internal money market that induces financial...

We present a model where the interaction between competition at school, industrial structure and labour market outcomes is characterised by the concept of Nash decentralised equilibrium. We show that the presence of spillovers and strategic complementarities could generate multiple equilibria....

This paper studies product market competition under a strategic transparency decision. Dominant investors can influence information collection in the financial market, and thereby corporate transparency, by affecting market liquidity or the cost of information collection. More transparency on a...

This paper surveys the recent literature devoted to the analysis of the interactions between the adoption of voluntary or negotiated agreements as a tool of environmental policy and market structure. The goal of this survey is twofold. On the one hand, we would like to identify the market...