Branch Banking And The Geography Of Bank Pricing

Paul S. Calem and Leonard Nakamura

The Review of Economics and Statistics, 1998, vol. 80, issue 4, 600-610

Abstract: We show that bank branching tends to mitigate localized market power by broadening the geographic scope of competition among banks, even though branch banking allows banks to differentiate themselves through their choices of branch locations. Banking services at peripheral locations will be priced more competitively when those locales are served by branch networks. We develop a theoretical model in support of this view and offer empirical evidence. © 1998 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog

Date: 1998
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Working Paper: Branch banking and the geography of bank pricing (1995)
Working Paper: Branch banking and the geography of bank pricing (1994)
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