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generations, even if the underlying productivity risk is small or zero. We conclude that a joint policy package of orderly default …
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In this paper we address the following question : is it more profitable, for an entrant in a differentiated market, to acquire an existing firm than to compete ? We illustrate the answer by considering competition in the banking sector
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In this paper we address the following question: is it more profitable, for an entrant in a differentiated market, to acquire an existing firm than to compete? We illustrate the answer by considering competition in the banking sector.
Persistent link: https://www.econbiz.de/10005065442
main result is that the bail-out policy unambiguously leads to higher risk-taking at those banks that do not enjoy a bail … in the deposit market and depressing other banks' margins. In contrast, the effects on the protected bank's risk taking …
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