We develop a model of spatial competition to explore how changes in the market structure affect the incentives of banks … reveal that the relaxation of competition distorts banks' incentives to invest in screening …

This paper studies screening competition under flexible information acquisition and its interaction with price … competition. Multiple homogeneous buyers play a game where they simultaneously design independent exams with pre … by mixed strategies. Moreover, equilibrium is inefficient and on average buyers over-reject the seller. Price regulation …