Working Paper
Market structure and competition among retail depository institutions
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;
Access Documents
File(s): File format is text/html http://www.federalreserve.gov/pubs/feds/2004/200404/200404abs.html
File(s): File format is application/pdf http://www.federalreserve.gov/pubs/feds/2004/200404/200404pap.pdf
Authors
Bibliographic Information
Provider: Board of Governors of the Federal Reserve System (U.S.)
Part of Series: Finance and Economics Discussion Series
Publication Date: 2004
Number: 2004-04