Abstract:
A banking spatial competition model is developed to activate the horizontal and vertical parameters of differentiation in a two- dimensional space. Banking competition has become more relevant given the vertical differentiation elements related to some financial assets features. We consider a model in which spatial competition including vertical differentiation sets banks into a geometrical variable space linked with the regulation of deposit interest rates and financial transformation intensity. Thus we can rehabilitate in some case the Hotelling minimum differentiation principle applied to banking space and the financial changes based on the relation between financial imitation and financial innovation.
Keywords:Banking; spatial competition (search for similar items in EconPapers) JEL-codes:GL (search for similar items in EconPapers) New Economics Papers: this item is included in nep-geo and nep-ure Date: 2005-05-28 Note: Type of Document - pdf; pages: 22