Competition in the Canadian Personal Finance Sector

Shelagh Heffernan

International Journal of the Economics of Business, 1994, vol. 1, issue 3, 323-338

Abstract: This paper employs cross-section continuous time series data to examine competition in the Canadian personal finance sector for the period 1987-90. Using a generalised linear pricing model, firm entry is found to be significant in the setting of deposit and mortgage rates, suggesting the presence an incontestable market structure consistent with Cournot oligopoly. There is also evidence of price-making behaviour and relative bargainlripoff products. For three of the four products studied, a 'fifth column' consisting of the 12 major banks and trust companies best explain pricing in these markets

Keywords: Canadian personal finance sector; Generalised linear pricing model; Fifth column, JEL classifications: G21, E43, L13, (search for similar items in EconPapers)
Date: 1994
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Citations: View citations in EconPapers (2)

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DOI: 10.1080/758536225

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