Bank mergers in spatially differentiated markets |
| |
Authors: | José A Novo-Peteiro |
| |
Institution: | University of A Coruña, Facultade de Ciencias Económicas e Empresariais, Campus de Elviña s/n, 15071 A Coruña, Spain |
| |
Abstract: | This paper studies the incentives of banks to merge when competing in differentiated markets. Localized competition effects and spatial competition variables can play a key role in defining the patterns of consolidation in this sector. We consider a model where banks compete in distinct spaces of depositor's characteristics. Regional merger is the outcome of the merger game if the spatial scope of demand is low and/or accessibility of services is not costly outside the home region. Otherwise, cross-regional merger is the outcome of the game. The results are consistent with the recent evolution of banking systems in many developed countries. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|