Bank mergers in spatially differentiated markets
This paper studies the incentives of banks to merge when competing in differentiated markets. Localized competition effects and spatial competition variables can play a key role in defining the patterns of consolidation in this sector. We consider a model where banks compete in distinct spaces of depositor's characteristics. Regional merger is the outcome of the merger game if the spatial scope of demand is low and/or accessibility of services is not costly outside the home region. Otherwise, cross-regional merger is the outcome of the game. The results are consistent with the recent evolution of banking systems in many developed countries.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nelson, Richard W., 1985. "Branching, scale economies, and banking costs," Journal of Banking & Finance, Elsevier, vol. 9(2), pages 177-191, June.
- Philipp Hartmann & Angela Maddaloni & Simone Manganelli, 2003.
"The Euro-area Financial System: Structure, Integration, and Policy Initiatives,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 19(1), pages 180-213.
- Manganelli, Simone & Hartmann, Philipp & Maddaloni, Angela, 2003. "The euro area financial system: structure, integration and policy initiatives," Working Paper Series 0230, European Central Bank.
- Pita Barros, Pedro, 1999. "Multimarket competition in banking, with an example from the Portuguese market," International Journal of Industrial Organization, Elsevier, vol. 17(3), pages 335-352, April.
- Matutes, Carmen & Padilla, A. Jorge, 1994. "Shared ATM networks and banking competition," European Economic Review, Elsevier, vol. 38(5), pages 1113-1138, May.
- Chiappori, Pierre-Andre & Perez-Castrillo, David & Verdier, Thierry, 1995. "Spatial competition in the banking system: Localization, cross subsidies and the regulation of deposit rates," European Economic Review, Elsevier, vol. 39(5), pages 889-918, May.
- Chiappori, P.A. & Perez-Castrillo, D. & Verdier, T., 1992. "Spatial Competition in the Banking System: Localization, Cross Subsidies and the Regulation of Deposit Rates," DELTA Working Papers 92-15, DELTA (Ecole normale supérieure).
- Aliber, Robert Z, 1984. "International Banking: A Survey," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 16(4), pages 661-678, November.
- Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
- Inês Cabral & Frank Dierick & Jukka Vesala, 2002. "Banking integration in the euro area," Occasional Paper Series 06, European Central Bank.
- Brito, Duarte, 2003. "Preemptive mergers under spatial competition," International Journal of Industrial Organization, Elsevier, vol. 21(10), pages 1601-1622, December.
- Hans Degryse, 2004. "The Impact of Technology and Regulation on the Geographical Scope of Banking," Oxford Review of Economic Policy, Oxford University Press, vol. 20(4), pages 571-590, Winter.
- Hans Degryse & Steven Ongena, 2004. "The Impact of Technology and Regulation on the Geographical Scope of Banking," Working Papers Department of Economics ces0408, KU Leuven, Faculty of Economics and Business, Department of Economics.
- Bouckaert, Jan & Degryse, Hans, 1995. "Phonebanking," European Economic Review, Elsevier, vol. 39(2), pages 229-244, February.
- Bouckaert, J. & Degryse, H., 1994. "Phonebanking," Papers 9482, Tilburg - Center for Economic Research.
- Degryse, H.A., 1995. "Phonebanking," Other publications TiSEM 86ac7d31-714b-4389-bded-2, Tilburg University, School of Economics and Management.
- Berger, Allen N. & Demsetz, Rebecca S. & Strahan, Philip E., 1999. "The consolidation of the financial services industry: Causes, consequences, and implications for the future," Journal of Banking & Finance, Elsevier, vol. 23(2-4), pages 135-194, February.
- Allen N. Berger & Rebecca Demsetz & Philip E. Strahan, 1998. "The consolidation of the financial services industry: causes, consequences, and implications for the future," Finance and Economics Discussion Series 1998-46, Board of Governors of the Federal Reserve System (U.S.).
- Lieven Baele & Annalisa Ferrando & Peter Hördahl & Elizaveta Krylova & Cyril Monnet, 2004. "Measuring financial integration in the euro area," Occasional Paper Series 14, European Central Bank.
- Degryse, Hans, 1996. "On the Interaction between Vertical and Horizontal Product Differentiation: An Application to Banking," Journal of Industrial Economics, Wiley Blackwell, vol. 44(2), pages 169-186, June.
- Degryse, H.A., 1996. "On the interaction between vertical and horizontal product differentiation : An application to banking," Other publications TiSEM 384e9355-ea79-4b3e-90cb-1, Tilburg University, School of Economics and Management.
- Allen N. Berger & Robert De Young & Gregory F. Udell, 2001. "Efficiency Barriers to the Consolidation of the European Financial Services Industry," European Financial Management, European Financial Management Association, vol. 7(1), pages 117-130.
- Allen N. Berger & Robert DeYoung & Gregory F. Udell, 2000. "Efficiency barriers to the consolidation of the European financial services industry," Finance and Economics Discussion Series 2000-37, Board of Governors of the Federal Reserve System (U.S.).
- Allen N. Berger & David B. Humphrey, 1992. "Megamergers in banking and the use of cost efficiency as an antitrust defense," Finance and Economics Discussion Series 203, Board of Governors of the Federal Reserve System (U.S.).
- Buch, Claudia M. & DeLong, Gayle, 2004. "Cross-border bank mergers: What lures the rare animal?," Journal of Banking & Finance, Elsevier, vol. 28(9), pages 2077-2102, September.
- DeLong, Gayle L. & Buch, Claudia M., 2001. "Cross-Border Bank Mergers: What Lures the Rare Animal?," Kiel Working Papers 1070, Kiel Institute for the World Economy (IfW).
- William C. Hunter & Larry D. Wall, 1989. "Bank merger motivations: a review of the evidence and an examination of key target bank characteristics," Economic Review, Federal Reserve Bank of Atlanta, issue Sep, pages 2-19.
- Bernheim, B. Douglas & Peleg, Bezalel & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria I. Concepts," Journal of Economic Theory, Elsevier, vol. 42(1), pages 1-12, June. Full references (including those not matched with items on IDEAS)