期刊名称：CORE Discussion Papers / Center for Operations Research and Econometrics (UCL), Louvain
出版年度：2007
卷号：1
出版社：Center for Operations Research and Econometrics (UCL), Louvain
摘要：The aim of this paper is to test the predictions of Sutton's model of independent
submarkets for the Italian retail banking industry. This industry, in fact, can be viewed
as made of a large number of local markets corresponding to different geographical
locations. In order to do that, I first develop a model of endogenous mergers that
shows how the number of firms is determined by the initial number of firms, by the
intensity of competition, and by the degree of product differentiation, and how this in
turn affects the one-firm concentration index. Then, in the second part, the number of
banks in each submarket is estimated using a truncated model and a Poisson model.
The size of the submarkets turned out to be at most provincial. Finally, the one-firm
concentration ratio of each province is regressed on the number of banks, also in
interaction with market size variables. As argued by Sutton for industries with
exogenous sunk costs, a stronger and negative relationship is found as the market
becomes larger.
关键词：exogenous sunk costs, intensity of competition, concentration, truncated
and Poisson models.
