Information sharing and lending market competition with switching costs and poaching

被引:68
作者
Gehrig, Thomas
Stenbacka, Rune
机构
[1] Swedish Sch Econ & Business Adm, Helsinki, Finland
[2] Univ Freiburg, Inst Erforsch Wirtschaftlichen Entwicklung, D-79085 Freiburg, Germany
基金
芬兰科学院;
关键词
information sharing; lending relationships; poaching; equilibrium switching; CREDIT;
D O I
10.1016/j.euroecorev.2006.01.009
中图分类号
F [经济];
学科分类号
02 ;
摘要
We analyze information sharing with repeated banking competition. In the presence of switching costs we find that information sharing renders poaching more profitable in future rounds of competition, since the poaching activities can be targeted towards (more) creditworthy borrowers. We find that information sharing reduces relationship benefits, and, therefore relaxes competition for initial market shares. Information sharing introduces a welfare tradeoff by promoting equilibrium profits at the expense of talented entrepreneurs whenever market power persists in credit market, whereas it is a matter of indifference without market power. Thus information sharing may induce exclusion of creditworthy borrowers from credit markets. (c) 2006 Elsevier B.V. All rights reserved.
引用
收藏
页码:77 / 99
页数:23
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