Banks as Multi-Output Oligopolies: An Empirical Evaluation of the Retail and Corporate Banking Markets

Journal of Money, Credit, and Banking, Vol. 30, No. 2, May 1998

Posted: 7 Jan 1998

See all articles by Sigbjorn Atle Berg

Sigbjorn Atle Berg

Norges Bank, Department for Market Operations and Analysis

Moshe Kim

University of Haifa - Department of Economics

Abstract

The distinction between retail and corporate banking markets is of much importance in real life banking organizations. The two markets differ with respect to concentration, the importance of informational asymmetries, and the extent of customer mobility. Within a standard conjectural variation model estimated on cost efficient banks as well as on the full sample of banks, we empirically characterize the strategic behavior in each of these markets and also focus on cross market interactions to see whether initial moves in one market affect the equilibrium in the other market. We compare our findings to the predictions that would follow from merely considering concentration ratios, such as the Herfindahl index.

JEL Classification: G21, L13

Suggested Citation

Berg, Sigbjorn Atle and Kim, Moshe, Banks as Multi-Output Oligopolies: An Empirical Evaluation of the Retail and Corporate Banking Markets. Journal of Money, Credit, and Banking, Vol. 30, No. 2, May 1998, Available at SSRN: https://ssrn.com/abstract=48218

Sigbjorn Atle Berg (Contact Author)

Norges Bank, Department for Market Operations and Analysis ( email )

Oslo, N-0107
Norway
47-22316176 (Phone)
47-22316661 (Fax)

Moshe Kim

University of Haifa - Department of Economics ( email )

Haifa 31905
Israel
(972) 4 8240115 (Phone)
(972)4-8240059 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
999
PlumX Metrics