Citation
Kp. Wong et Dk. Chan, A SIMPLE-MODEL OF SPATIAL BANKING COMPETITION, Economics letters, 42(4), 1993, pp. 391-397
Citations number
6
Categorie Soggetti
Economics
Journal title
ISSN journal
01651765
Volume
42
Issue
4
Year of publication
1993
Pages
391 - 397
Database
ISI
SICI code
0165-1765(1993)42:4<391:ASOSBC>2.0.ZU;2-Y
Abstract
This paper applies the financial intermediation and optimal contract t
heories to the standard Hotelling model. In it, we demonstrate that to
o little investment is undertaken and too much costly monitoring is in
volved in the unregulated banking industry. Thus, our model suggests a
rationale for the government to regulate bank locations.