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competitiveness of the given regional market, and the results from non-structural methods of estimation suggest that bank competition …This empirical paper adds to competition and industrial organization literature by exploring the interplay between … markets to be ruled by monopolistic competition, although estimation by revenue-equation does not reject monopoly hypothesis …
Persistent link: https://www.econbiz.de/10012905826
We propose a new test to evaluate the impact of horizontal mergers on competition in the banking industry. The test is … and interest rates and consists in comparing the estimated degree of competition in the status- quo, where branching … estimated measures of competition quantifies the impact of the merger. We apply our test to French and Italian mergers …
Persistent link: https://www.econbiz.de/10012906151
This paper studies banks' competitive behavior on the deposit side of the Italian retail banking industry. We use a structural model to estimate demand for deposit services and test several supply models. We find that both the competitive, differentiated product Bertrand and the perfectly...
Persistent link: https://www.econbiz.de/10013007453
Intertemporal shifts in conduct, such as a transition from competitive to anticompetitive behavior, induce shifts in the firms' equilibrium price configurations. Such shifts generate non-stationary price dynamics in addition to those which originate from exogenous fundamentals. We exploit this...
Persistent link: https://www.econbiz.de/10013024684
size is important for product differentiation. Following deregulation, bank competition intensifies and cost efficiency …This paper examines competition among commercial banks following deregulation in a small open economy. I jointly … structure. The empirical results show that the banking sector is characterized by the Nash-Bertrand equilibrium in which bank …
Persistent link: https://www.econbiz.de/10013292153
We document that within regional U.S. mortgage markets an increase in competition exerts differential effects on banks … to an increase in the intensity of competition, while small market share banks enhance capitalization and reduce risk … taking. These results are tied to market shares and not driven by bank size or the level of concentration within local …
Persistent link: https://www.econbiz.de/10013211829
strategic use of IT capital by Islamic banks for the nature of competition in the Islamic bank industry of Jordon. By so doing … degree of competition in an industry mainly through forestalling entry and thereby limiting future competition in the … industry. Sunk-cost investments play an important role in the debate on the competition-(in)stability perspectives for the …
Persistent link: https://www.econbiz.de/10012305076
This paper studies the relationship between competition measures at the bank level and the price of credit for non …-financial firms in Mexico during 2009-2016. Two indicators of competition are constructed: the Lerner indicator and the Boone …
Persistent link: https://www.econbiz.de/10012256390
We model the impact of bank mergers on loan competition, reserve holdings and aggregate liquidity. A merger creates an … the interbank market. Loan market competition modifies the heterogeneity in the size of banks, thus affecting aggregate … operations by the central bank. …
Persistent link: https://www.econbiz.de/10011585555
Switching costs are a leading cause of customer lock-in in banking, reducing the extent of competition and increasing … microdata. The estimates obtained here-using bank accounting information collected on a quarterly basis from 2009 to 2011 …. Additionally, there is some evidence that much of a bank's market share is due to its continued relationships with customers over …
Persistent link: https://www.econbiz.de/10011866317