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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]

Author

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  • Ruiz-Porras, Antonio

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.

Suggested Citation

  • 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 Courno
    ," MPRA Paper 11351, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:11351
    as

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    References listed on IDEAS

    as
    1. Colombo Luca & Labrecciosa Paola, 2008. "When Stackelberg and Cournot Equilibria Coincide," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 8(1), pages 1-7, January.
    2. Frederique Bracoud, 2007. "Double Bertrand competition among intermediaries when consumers can default," Economics Bulletin, AccessEcon, vol. 4(7), pages 1-16.
    3. Dermine, J., 1986. "Deposit rates, credit rates and bank capital : The Klein-Monti Model Revisited," Journal of Banking & Finance, Elsevier, vol. 10(1), pages 99-114, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    banks; leadership; deposits; benefits; stability;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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