Entry and competition in highly concentrated banking markets
AbstractThis article studies conditions of entry and competitive conduct in highly concentrated banking markets. The author estimates the minimum market size at which a second bank, a third, a fourth, and so on, can enter and maintain long-run profitability. The results suggest no evidence of cartel-like behavior, where banks collude and maximize joint monopoly profits, even in markets with only two or three banks. The results are more consistent with the competitive conduct predicted by models of oligopolistic behavior.
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Bibliographic InfoArticle provided by Federal Reserve Bank of Chicago in its journal Economic Perspectives.
Volume (Year): (2002)
Issue (Month): Q IV ()
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- Bresnahan, Timothy F & Reiss, Peter C, 1991.
"Entry and Competition in Concentrated Markets,"
Journal of Political Economy,
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- Noailly, Joëlle & Nahuis, Richard, 2010. "Entry and competition in the Dutch notary profession," International Review of Law and Economics, Elsevier, vol. 30(2), pages 178-185, June.
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