EconPapers    
Economics at your fingertips  
 

Is Competition Among Cooperative Banks a Negative Sum Game?

Paolo Coccorese () and Giovanni Ferri

No wpC19, CERBE Working Papers from CERBE Center for Relationship Banking and Economics

Abstract: Does ‘inner’ competition – rivalry among network members – worsen performance in a network of cooperative banks? Inner competition might, in fact, endanger network-dependent scale economies. We test our hypothesis on Banche di Credito Cooperativo (BCCs), Italy’s network of mutual cooperative banks. We find a worsening of performance both at incumbent and (even more) at aggressor BCCs when they compete among themselves. Instead, the worsening is mild when BCCs compete with non-BCC comparable banks. We conclude that inner competition among cooperative banks is a negative sum game and, thus, limiting it would be desirable to preserve the stability of cooperative banking networks.

Keywords: Cooperative Banks; Rivalry Among Network Members; Strategic Interactions; Negative Sum Game; Banking Network (search for similar items in EconPapers)
JEL-codes: D47 G21 G34 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2017-03
New Economics Papers: this item is included in nep-ban, nep-com, nep-eff and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://repec.lumsa.it/wp/wpC19.pdf (application/pdf)

Related works:
Journal Article: Is competition among cooperative banks a negative sum game? (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lsa:wpaper:wpc19

Access Statistics for this paper

More papers in CERBE Working Papers from CERBE Center for Relationship Banking and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Pierluigi Murro ().

 
Page updated 2021-05-07
Handle: RePEc:lsa:wpaper:wpc19