Title: On the interaction between vertical and horizontal product differentiation: An application to banking
Authors: Degryse, Hans # ×
Issue Date: Jun-1996
Publisher: Blackwell publ ltd
Series Title: Journal of industrial economics vol:44 issue:2 pages:169-186
Abstract: We study the conditions under which banks offer remote access. Note there exists interaction between location and taste for remote access. Offering remote access is an instrument to (partially) segment depositors according to their taste for that technology. The interaction between location and taste for remote access enhances this effect. Different equilibria emerge as the result of two effects. First, introducing remote access steals depositors from the opponent as the product specification becomes more appealing. Second, deposit rate competition is affected as remote access determines the substitutability of banks.
ISSN: 0022-1821
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center of Monetary and Information Economics, Leuven
× corresponding author
# (joint) last author

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