This paper tests for the presence of market power in the Italian banking industry during the period 1971 1996 by using a simultaneous-equation model. In spite of growing consolidation, which occurred particularly in the latter years, the empirical findings rule out the possibility that the market is characterised by a joint monopoly, and appear to support the view that the conduct of the Italian banks is becoming more competitive as a consequence of the European integration process. These results, therefore, also constitute a counter argument to the idea that high concentration prevents substantial competition amongst firms.
The degree of competition in the Italian banking industry
COCCORESE, Paolo
1998
Abstract
This paper tests for the presence of market power in the Italian banking industry during the period 1971 1996 by using a simultaneous-equation model. In spite of growing consolidation, which occurred particularly in the latter years, the empirical findings rule out the possibility that the market is characterised by a joint monopoly, and appear to support the view that the conduct of the Italian banks is becoming more competitive as a consequence of the European integration process. These results, therefore, also constitute a counter argument to the idea that high concentration prevents substantial competition amongst firms.File in questo prodotto:
Non ci sono file associati a questo prodotto.
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
