Multimarket spatial competition in the Colombian deposit market

Dairo Estrada () and Sandra Rozo

No 3264, Borradores de Economia from Banco de la Republica

Abstract: This paper presents a multimarket spatial competition oligopoly model for the Colombian deposit market, in line with the New Em- pirical 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 competitive- ness level. The theoretical model is applied to quarterly Colombian data that covers the period between 1996 and 2005. Our results sug- gest 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 (search for similar items in EconPapers)
Pages: 30
Date: 2006-10-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Multimarket spatial competition in the Colombian deposit market (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000094:003264

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