Bank behavior and the interbank rate in an oligopolistic market
AbstractThe well-known Klein-Monti model of bank behavior considers a monopolistic bank. We demonstrate that this model’s results on the comparative static effects of a change in the exogenous interbank market interest rate do not necessarily hold in oligopolistic Cournot or Stackelberg generalizations. Introducing asymmetries in the cost functions of the banks, or in their way of conduct, may imply counterintuitive effects on the individual banks’ volumes of loans and deposits. Keywords: Bank behavior, Cournot oligopoly, Stackelberg oligopoly
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Bibliographic InfoPaper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 99E49.
Date of creation: 1999
Date of revision:
Other versions of this item:
- Toolsema-Veldman, Linda A. & Schoonbeek, Lambert, 1999. "Bank behavior and the interbank rate in an oligopolistic market," CCSO Working Papers 199909, University of Groningen, CCSO Centre for Economic Research.
- NEP-ALL-2000-02-28 (All new papers)
- NEP-IND-2000-02-28 (Industrial Organization)
- NEP-MIC-2000-02-28 (Microeconomics)
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- dala, eleni & karpetis, christos & varelas, erotokritos, 2013. "Bank Behavior in Oligopoly, Bank- Clients and Monetary Policy," MPRA Paper 47483, University Library of Munich, Germany.
- Ruiz-Porras, Antonio, 2008.
"Los beneficios del liderazgo en el mercado de depósitos bancarios: Una comparación entre Cournot y Stackelberg
[The benefits of leadership in the banking deposit market: A comparison between Cour," MPRA Paper 11351, University Library of Munich, Germany.
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