The Review of Economics and Statistics Vol. 80 No. 4 1998
Branch Banking and the Geography of Bank Pricing
Abstract
We show that bank branching tends to mitigate localized market power by broadening the geographic scope of competition among banks, even though branch banking allows banks to differentiate themselves through their choices of branch locations. Banking services at peripheral locations will be priced more competitively when those locales are served by branch networks. We develop a theoretical model in support of this view and offer empirical evidence.
- DOI
- 10.1162/003465398557681
- Volume
- 80
- Issue
- 4
- Pages
- 600-610
- Language
- en
- Sources
- openalex crossref