Article Abstract:
A study has been conducted to analyze competition in the European banking industry. Seven countries were studied in the light of the changing regulatory frameworks to which European banks were exposed. These countries were Belgium, Denmark, France, Germany, The Netherlands, Spain and the UK. Findings indicated that the level of market power has been determined to be substantial in most of these countries and that the level of coordination between banks has fallen over time in the mortgage market, while the commercial loans market seemed unaffected.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
A simplified version of a vertical differentiation model developed by Gabszewicz and Thisse is created to determine product differentiation among competing firms. Quantity competition and simultaneous choice of quality and quantity is assumed in this model. Results show that these industries are characterized by head to head competition and the existence of gaps in the product line. The entry of new competitors is expected to reduce the number of product varieties available.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
A structural model accounting for competition in capacity and prices is presented. It is concluded that the collusiveness of firms' market behaviour in the product market could be substantially overestimated when capacity competition is not taken into account.
User Contributions:
Comment about this article or add new information about this topic: