Multimarket Contact in Italian Retail Banking: Competition and Welfare

Abstract

This paper studies banks' competitive behavior on the deposit side of the Italian retail banking industry. We use a structural model to estimate demand for deposit services and test several supply models. We …nd that both the competitive, di¤erentiated product Bertrand and the perfectly collusive models are rejected against partially collusive models with coalitions based on the participants'market contact. In the best …tting collusive model, the coalition includes 8 banks with at least 19 overlapped regions. Banks with extensive multi-market contacts tend to be less competitive and behave as if they were maximizing their pro…t jointly, taking into account the competitive fringe of smaller banks.

Advertising, consumer awareness, and choice: evidence from the U.S. banking industry

“…Dick () and Wang () develop aggregate‐level, structural models of consumer demand for retail banks. Dick (), Hirtle (), and Ishii () investigate branching structures and Dick () and Mólnar, Violi, and Zhou () study competition in retail banking. Similar to Ishii (), Dick (), and Wang (), we estimate demand for retail banks, but, in contrast to the aforementioned articles, our model describes consumer shopping and purchase behavior using consumer‐level data.…”

“…With its $14 trillion of assets, 7,000 banks, and more than 80,000 bank branches, the U.S. banking industry comprises a very important portion of the “retail” economy with significant attention from regulators and policy makers. Despite the importance of the banking sector, structural demand analyses to date (e.g., Dick, ; Mólnar, Violi, and Zhou, ; Wang, ) have been based on aggregated market share data on deposits. There has been very little research using detailed consumer‐level data to characterize consumers' heterogeneous response to drivers of demand.…”

Advertising, Consumer Awareness, and Choice: Evidence from the U.S. Banking Industry

“…Dick (2008) and Wang (2010) develop aggregate-level, structural models of consumer demand for retail banks. Dick (2007) and Hirtle (2007) investigate branching structures and Dick (2007) and Mólnar, Violi, and Zhou (2013) study competition in retail banking.…”

“…Despite the importance of the banking sector, structural demand analyses to date (e.g. Dick 2008, Mólnar, Violi, and Zhou 2013, Wang 2010) have only utilized aggregated market share data on deposits. There has been very little research using detailed consumer level data to characterize consumers' heterogeneous response to drivers of demand.…”

L’inefficience des partenariats public-privé appliqués aux prisons françaises

“…En effet, lorsqu'aucune firme ne dispose d'une ressource lui permettant de limiter les conséquences des représailles, elle tend à éviter tout conflit sur les parts de marché (Ma, 1998 ;Young et al, 2000). C'est pourquoi une telle structure conduit à des prix supérieurs aux prix concurrentiels (Parker et Röller, 1997 ;Fu, 2003 ;Chicu et Ziebarth, 2013 ;Molnar et al, 2013). L'adoption du PPP peut donc produire un oligopole restreint protégé par des barrières à l'entrée.…”