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Multimarket spatial competition in the Colombian deposit market

  • Dairo Estrada


  • Sandra Rozo


This paper presents a multimarket spatial competition oligopoly model for the Colombian deposit market, in line with the New Em- pirical 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 competitive- ness level. The theoretical model is applied to quarterly Colombian data that covers the period between 1996 and 2005. Our results sug- gest 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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Paper provided by BANCO DE LA REPÚBLICA in its series BORRADORES DE ECONOMIA with number 003264.

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Length: 30
Date of creation: 01 Oct 2006
Date of revision:
Handle: RePEc:col:000094:003264
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