Novo Peteiro, José2024-02-072009Novo-Peteiro, José A., 2009. Bank mergers in spatially differentiated markets, Journal of Economics and Business, Elsevier, vol. 61(1), pages 90-96., https://doi.org/10.1016/j.jeconbus.2008.01.003.0148-6195http://hdl.handle.net/2183/35499[Abstract] This paper studies the incentives of banks to merge when competing in differentiated markets. Localized competition effects and spatial competition variables can play a key role in defining the patterns of consolidation in this sector. We consider a model where banks compete in distinct spaces of depositor's characteristics. Regional merger is the outcome of the merger game if the spatial scope of demand is low and/or accessibility of services is not costly outside the home region. Otherwise, cross-regional merger is the outcome of the game. The results are consistent with the recent evolution of banking systems in many developed countries.engCopyright © 2008 Elsevier Inc. All rights reserved.Bank mergersBanking competitionMarket definitionjournal articleembargoed accesshttps://doi.org/10.1016/j.jeconbus.2008.01.003