Los beneficios del liderazgo en el mercado de depósitos bancarios: Una comparación entre Cournot y Stackelberg

Ruiz-Porras, Antonio (2008): Los beneficios del liderazgo en el mercado de depósitos bancarios: Una comparación entre Cournot y Stackelberg. Forthcoming in: EconoQuantum

Abstract

We analyze the effects of leadership in banking when oligopolistic competition exists in the market of deposits. We assess such effects by comparing the performance of banking systems that only differ on their strategic interactions. Specifically, we compare the outcomes associated to strategies of the Cournot and Stackelberg types (symmetric competition and leader-follower strategies). Our main findings suggest that there are private and social benefits associated to leadership. The results suggest that it induces high levels of deposits, of returns and of consumption for long-term depositors. Moreover, leadership enhances financial stability and efficiency in banking.

• Item Type: MPRA Paper
• English Title: The benefits of leadership in the banking deposit market: A comparison between Cournot and Stackelberg
• Language: Spanish
• Keywords: banks; leadership; deposits; benefits; stability
• Subjects: D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection; D - Microeconomics > D9 - Intertemporal Choice > D92 - Intertemporal Firm Choice, Investment, Capacity, and Financing; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

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