Shared ownership and pricing in a network switch

Article Abstract:

Joint ownership of wholesale switches in automated teller (ATM) machine network raises questions regarding antitrust policy. In a consolidated network, the member banks have homogeneous pricing. This allows them to control service price since they are not in competition with each other. This leads to monopolistic distortions of pricing which prove detrimental to both the competing solely-owned switches and the end users of the ATM service. Thus, antitrust policy makers should be more watchful when constructing antitrust laws.

Functions related to deposit banking, Electronic Banking Svcs, Antitrust Response (Business), Analysis, Interpretation and construction, Antitrust law, Automated teller machines, Electronic banking, Monopolies, Business-government relations

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Multimarket competition in banking, with an example from the Portuguese market

Article Abstract:

Banks usually have several branches so that their activities are often spread out over several markets. This results in equilibrium price distribution. A spatial competition model was developed to explain price differences across banks in the deposits market. The model permits the separation of two distinct sources of observed market share: cooperation in the industry and product differentiation caused by location in local markets. The model is applied on the Portuguese commercial banking industry.

Models, Commercial banks, Portugal, Market share

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The independent submarkets model: an application to the Spanish retail banking market

Article Abstract:

The predictions of the independent submarkets model developed in Sutton in 1998 are tested with data available on the Spanish retail banking market. The test results showed that the number of branches opened in each regional market varies widely from bank to bank and that the results were fully consistent with the predictions of Sutton's theoretical model.

Retail Banking Services, Marketing procedures, Research Findings, Spain, Evaluation, Retail banking, Marketing research, Market research

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