Endogenous Product Differentiation in Credit Markets: What do Borrowers Pay for?
AbstractThis paper studies strategies pursued by banks in order to differentiate their services from those of their rivals. In that way competition among banks is softened. More specifically we analyze if the bank size, the banks ability to avoid losses,and its capital ratio can be used as strategic variabl es to make banks different and increase the interest rates banks can charge their borrowers in equilibrium.
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Bibliographic InfoPaper provided by Norwegian School of Economics and Business Administration- in its series Papers with number 27/2001.
Length: 23 pages
Date of creation: 2001
Date of revision:
Contact details of provider:
Postal: NORWEGIAN SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION, HELLEVEIEN 30, 5035 BERGEN SANDVIKEN NORWAY.
Phone: 5595 9000
Fax: 5595 9100
Web page: http://www.nhh.no/
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COMPETITION ; BANKS ; INTEREST;
Other versions of this item:
- Kim, Moshe & Kristiansen, Eirik Gaard & Vale, Bent, 2005. "Endogenous product differentiation in credit markets: What do borrowers pay for?," Journal of Banking & Finance, Elsevier, vol. 29(3), pages 681-699, March.
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
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