To screen or not to screen? Let the competition decide.

Papanikolaou, N.I., 2018. To screen or not to screen? Let the competition decide. Economics letters, 170, 175 - 178.

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Official URL: https://www.sciencedirect.com/journal/economics-le...

DOI: 10.1016/j.econlet.2018.06.015

Abstract

We develop a model of spatial competition to explore how changes in the market structure affect the incentives of banks to screen loan applicants. We take a post-crisis perspective that treats the number of banks as exogenous. Our findings reveal that the relaxation of competition distorts banks’ incentives to invest in screening.

Item Type:Article
ISSN:0165-1765
Uncontrolled Keywords:Financial crisis; Bank competition; Market structure; Screening
Group:Faculty of Management
ID Code:30944
Deposited By: Unnamed user with email symplectic@symplectic
Deposited On:12 Jul 2018 13:38
Last Modified:12 Jul 2018 13:43

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