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Our research as well as that by other authors has found scale economies at all sizes of banks and the largest scale economies at the largest banks – that is, larger banks are able to provide products at lower average cost than smaller banks. While the earlier literature found that scale...
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experiment whether gossip affects the efficiency of human interactions. We let subjects play a trust game. Third parties observe … possibility of gossip is highly efficiency-increasing compared to a situation without any gossip. In two further control … treatments, we show that the mere fact of being observed by third parties cannot explain the efficiency-increasing effect of …
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