A discussion of joint bank and industry concentration

• Authors: Soldatos Gerasimos
• Languages of publication: EN

Abstracts

EN

This article examines bank and industry concentration jointly within the static framework of Cournot competition. The general equilibrium is one in which banks form a multiplant monopoly and firm profit is zero. This is an unstable equilibrium because: (A) Firms have an incentive to (i) collude to “fight banks back” in the context of bilateral monopoly bargaining, and/or (ii) modernize their business towards financial independence; (B) Banks’ best response is (i) innovation too, combined with (ii) disciplinary credit rationing.

Keywords

EN

Bank and industry concentration; innovation; industrial policy

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Prague Development Center, Czech Republic
• Journal: Business and Economic Horizons
• Year: 2018
• Volume: Volume 14
• Issue: Issue 2
• Pages: 207-216

Dates

published

2018-02-22

Contributors

author

Soldatos Gerasimos

• American University of Athens, Athens, Greece

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