| Abstract: | This paper models the investment behavior of a multi‐asset firm with market power that accumulates valuable intangible assets to complement the IT capital. The investment model is estimated using data from Spanish banks on assets of different nature: material (branches, financial), immaterial (advertising and IT), and intangible (training of workers). The paper estimates that the representative bank spends five additional Euros per Euro invested in IT‐related assets in complementary intangible assets or, equivalently, intangibles amount to approximately 10 percent of the economic value of the representative bank. The remaining economic value is distributed between 28 percent from rents attributed to market power, and 62 percent to the cost of market‐purchased assets. |
