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On the Interaction between Vertical and Horizontal Product Differentiation: An Application to Banking

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Author Info
Degryse, Hans

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Abstract

The author studies the conditions under which banks offer remote access. Note there exists interaction between location and taste for remote access. Offering remote access is an instrument to (partially) segment depositors according to their taste for that technology. The interaction between location and taste for remote access enhances this effect. Different equilibria emerge as the result of two effects. First, introducing remote access steals depositors from the opponent as the product specification becomes more appealing. Second, deposit rate competition is affected as remote access determines the substitutability of banks. Copyright 1996 by Blackwell Publishing Ltd.

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Industrial Economics.

Volume (Year): 44 (1996)
Issue (Month): 2 (June)
Pages: 169-86
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bla:jindec:v:44:y:1996:i:2:p:169-86

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821

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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Scatasta, Sara & Wesseler, Justus & Hobbs, Jill, 2005. "The Impact of Labeling Practices on Perceived Quality of GM Food Products: A Revealed Preferences Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24599, European Association of Agricultural Economists. [Downloadable!]
  2. Degryse, Hans & Laeven, Luc & Ongena, Steven, 2006. "The impact of organizational structure and lending technology on banking competition," Discussion Paper 67, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  3. Andrea Mangani & Paolo Patelli, 2002. "The Max-Min Principle of Product Differentiation: An Experimental Analysis," LEM Papers Series 2002/05, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  4. Hans Degryse & Steven Ongena, 2004. "Bank orientation and industry specialization," Proceedings, Federal Reserve Bank of Chicago, issue May, pages 412-427. [Downloadable!]
  5. Hans Degryse & Steven Ongena, 2002. "Distance, Lending Relationships, and Competition," CSEF Working Papers 80, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy. [Downloadable!]
    Other versions:
  6. Vesala, Jukka, 1998. "Technological Transformation and Nonbank Competition in a Model of Retail Banking Oligopoly," Research Discussion Papers 8/1998, Bank of Finland. [Downloadable!]
  7. Manez, J.A. & Waterson, M., 2001. "Multiproduct Firms and Product Differentiation: a Survey," The Warwick Economics Research Paper Series (TWERPS) 594, University of Warwick, Department of Economics. [Downloadable!]
  8. Erik Benrud, 2003. "Competition Between Low and High Quality Products in the Financial Services Market," Journal of Financial Services Research, Springer, vol. 23(2), pages 133-147, April. [Downloadable!] (restricted)
  9. Ronald B. Davies, 2000. "Abstinence from Child Labor and Profit Seeking," University of Oregon Economics Department Working Papers 2000-1, University of Oregon Economics Department, revised 01 Aug 2002. [Downloadable!]
    Other versions:
  10. Ari Hyytinen & Otto Toivanen, 2000. "Monitoring and Market Power in Credit Markets," Econometric Society World Congress 2000 Contributed Papers 1879, Econometric Society. [Downloadable!]
    Other versions:
  11. Heli Koski & Tobias Kretschmer, 2006. "Innovation and Dominant Design in Mobile Telephone," Discussion Papers 1012, The Research Institute of the Finnish Economy. [Downloadable!]
    Other versions:
  12. Hans Degryse & Andreas Irmen, 2001. "On the incentives to provide fuel-efficient automobiles," Journal of Economics, Springer, vol. 73(2), pages 149-165, June. [Downloadable!] (restricted)
  13. Ongena, S. & Degryse, H.A., 2003. "The impact of competition on bank orientation and specialization," Discussion Paper 108, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  14. Luiz Humberto Cavalcante Veiga & André Luís Rossi de Oliveira, 2003. "Diferenciação Horizontal e Poder de Mercado: os Efeitos do E-BANKING Sobre as Tarifas Bancárias," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting] d48, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
    Other versions:
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