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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 Cournot and Stackelberg]

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Author Info
Ruiz-Porras, Antonio

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Abstract

We analyze the effects of leadership in banking when oligopolistic competition exists in the market of deposits. We assess such effects by comparing the performance of banking systems that only differ on their strategic interactions. Specifically, we compare the outcomes associated to strategies of the Cournot and Stackelberg types (symmetric competition and leader-follower strategies). Our main findings suggest that there are private and social benefits associated to leadership. The results suggest that it induces high levels of deposits, of returns and of consumption for long-term depositors. Moreover, leadership enhances financial stability and efficiency in banking.

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File URL: http://mpra.ub.uni-muenchen.de/11351/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 11351.

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Date of creation: 06 Oct 2008
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Handle: RePEc:pra:mprapa:11351

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Related research
Keywords: banks; leadership; deposits; benefits; stability;

Find related papers by JEL classification:
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
D92 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Firm Choice and Growth, Investment, or Financing
G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages

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This page was last updated on 2009-12-9.


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