Multimarket spatial competition in the Colombian deposit market

Dairo Estrada () and Sandra Rozo

Borradores de Economia from Banco de la Republica de Colombia

Abstract: This paper presents a multimarket spatial competition oligopoly model for the Colombian deposit market, in line with the New Empirical Industrial Organization (NEIO) approach. In this framework, banks use price and non-price strategies to compete in the market, which allows us to analyze the country and the regional competitiveness level. The theoretical model is applied to quarterly Colombian data that covers the period between 1996 and 2005. Our results suggest that, although the country deposit market appears to be more competitive than the Nash equilibrium, there are some local areas within the country that present evidence of market power.

Keywords: Banking; Location; Competition; Colombia. (search for similar items in EconPapers)
JEL-codes: D4 G21 L13 R12 (search for similar items in EconPapers)
Date: 2006-10
New Economics Papers: this item is included in nep-ban, nep-com, nep-mic and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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https://doi.org/10.32468/be.413 (application/pdf)

Related works:
Working Paper: Multimarket spatial competition in the Colombian deposit market (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:bdr:borrec:413

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