Carbo Valverde, Santiago and Fernández de Guevara y Rodoselovics, Juan and Humphrey, David and Maudos, Joaquin (2009): Estimating the intensity of price and non-price competition in banking. Forthcoming in: Banks and Bank Systems , Vol. 4, No. 2 (2009)
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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.
|Item Type:||MPRA Paper|
|Original Title:||Estimating the intensity of price and non-price competition in banking|
|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:||02. Oct 2009 16:39|
|Last Modified:||12. Feb 2013 19:06|
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