Carbo Valverde, Santiago and Fernández de Guevara y Rodoselovics, Juan and Humphrey, David and Maudos Villarroya, Joaquín (2005): Estimating the intensity of price and non-price competition in banking: an application to the Spanish case. Published in: Documento de Trabajo, Fundación BBVA (2005)
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We model bank oligopoly behaviour using price and non-price competition as strategic variables in an expanded conjectural variations framework. Rivals can respond to changes in both loan and deposit market prices as well as (non-price) branch market shares. The model is illustrated using data for Spain which, over 1986-2002, eliminated interest rate and branching restrictions and set off a competitive race to lock-in expanded market shares. Banks use both interest rates and branches as strategic variables and both have changed over time. We illustrate the results using a regional vs. a national specification for the relevant markets. (97 words)
|Item Type:||MPRA Paper|
|Original Title:||Estimating the intensity of price and non-price competition in banking: an application to the Spanish case|
|Keywords:||non-price competition, banking, market shares|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets
D - Microeconomics > D4 - Market Structure and Pricing > D43 - Oligopoly and Other Forms of Market Imperfection
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||Joaquin Maudos|
|Date Deposited:||17. May 2009 00:26|
|Last Modified:||13. Feb 2013 21:57|
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