Market structure and competition among retail depository institutions

Andrew M. Cohen and Michael Mazzeo
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Andrew M. Cohen: https://www.federalreserve.gov/econres/andrew-m-cohen.htm

No 2004-04, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: We assess the competitive impact that single-market banks and thrift institutions have on multi-market banks (and vice-versa) in 1,884 non- MSA markets. We estimate a model of equilibrium market structure which endogenizes entry for three types: multi-market banks, single-market banks, and thrift institutions. Observed market structures and the solution to an entry-type game identify the parameters of a latent (unobserved) profit function. We find significant evidence of product differentiation-- particularly in the case of thrifts. Furthermore, product differentiation appears to depend upon differences in market geography.

Keywords: Banks and banking, American; Banking structure (search for similar items in EconPapers)
Date: 2004
New Economics Papers: this item is included in nep-com and nep-geo
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Citations: View citations in EconPapers (7)

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