[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/a/oup/jcomle/v11y2015i2p353-363..html
   My bibliography  Save this article

Market Structure And Intensity Of Price Competition In Eu Banking

Author

Listed:
  • Giovanni Alberto Tabacco
Abstract
This article analyzes both determinants of market structure and the intensity of price competition in the European Union (EU) banking industry. For this purpose, the first part of the article applies John Sutton's framework for empirically measuring the relationship between market size and market concentration. Next, the analysis turns to assessing the degree of price competition by applying a method of measuring banking competition that I have recently developed. Results suggest that there is a null relationship between market size and concentration, and that the estimated lower bound to concentration is well above zero. These two pieces of empirical evidence support Sutton's endogenous sunk costs model. Moreover, empirical estimates of a measure of competition—distance to the lower bound to concentration—suggest that the majority of EU national banking markets have low intensity of price competition. In contrast, Estonia, Netherlands, Finland, and Lithuania appear to have the most competitive banking industries.

Suggested Citation

  • Giovanni Alberto Tabacco, 2015. "Market Structure And Intensity Of Price Competition In Eu Banking," Journal of Competition Law and Economics, Oxford University Press, vol. 11(2), pages 353-363.
  • Handle: RePEc:oup:jcomle:v:11:y:2015:i:2:p:353-363.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/joclec/nhv007
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ivana Blazkova, & Ondrej Dvoulety, 2017. "Is the price-cost margin affected by the market concentration? Evidence from the Czech food and beverages industry," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(2), pages 256-269, May.
    2. Tabacco, Giovanni Alberto, 2015. "Does competition spur innovation? Evidence from labor productivity data for the banking industry," Economics Letters, Elsevier, vol. 132(C), pages 45-47.

    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:jcomle:v:11:y:2015:i:2:p:353-363.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/jcle .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.