Conference Paper
Using market structure to assess differentiation between 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: Banking market; Banking structure; Bank deposits;
Status: Published in Conference on Bank Structure and Competition (2004 : 40th) ; How do banks compete? strategy, regulation, and technology
Authors
Bibliographic Information
Provider: Federal Reserve Bank of Chicago
Part of Series: Proceedings
Publication Date: 2004
Number: 940
Pages: 255-266