Multimarket spatial competition in the Colombian deposit market
AbstractThis paper presents a multimarket spatial competition oligopoly model for the Colombian deposit market, in line with the New Empirical Industrial Organization (NEIO) approach. In this framework, banks use price and non-price strategies to compete in the market, which allows us to analyze the country and the regional competitiveness level. The theoretical model is applied to quarterly Colombian data that covers the period between 1996 and 2005. Our results suggest that, although the country deposit market appears to be more competitive than the Nash equilibrium, there are some local areas within the country that present evidence of market power.
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Bibliographic InfoPaper provided by Banco de la Republica de Colombia in its series Borradores de Economia with number 413.
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Banking; Location; Competition; Colombia. Classification JEL: D4; G21; L13; R12.;
Other versions of this item:
- Dairo Estrada & Sandra Rozo, 2006. "Multimarket spatial competition in the Colombian deposit market," BORRADORES DE ECONOMIA 003264, BANCO DE LA REPÚBLICA.
- Col - Mathematical and Quantitative Methods - - - - -
- Cla - Mathematical and Quantitative Methods - - - - -
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-11-18 (All new papers)
- NEP-BAN-2006-11-18 (Banking)
- NEP-COM-2006-11-18 (Industrial Competition)
- NEP-MIC-2006-11-18 (Microeconomics)
- NEP-URE-2006-11-18 (Urban & Real Estate Economics)
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