Endogenous Product Differentiation in Credit Markets: What do Borrowers Pay for?

Moshe Kim, Eirik Kristiansen and Bent Vale

Working Papers from Norwegian School of Economics and Business Administration-

Abstract: This paper studies strategies pursued by banks in order to differentiate their services from those of their rivals. In that way competition among banks is softened. More specifically we analyze if the bank size, the banks ability to avoid losses,and its capital ratio can be used as strategic variabl es to make banks different and increase the interest rates banks can charge their borrowers in equilibrium.

Keywords: COMPETITION; BANKS; INTEREST (search for similar items in EconPapers)
JEL-codes: G21 L15 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2001
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Citations: View citations in EconPapers (8)

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Journal Article: Endogenous product differentiation in credit markets: What do borrowers pay for? (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:norgee:27/2001

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