7 Lqirupdwlrq Dftxlvlwlrq dqg Zhoiduh

(1)

discussion papers

FS IV 99 - 23

The Structure of the Banking Sector, Credit Screening and Firm Risk

Michael Tröge

October 1999

ISSN Nr. 0722 - 6748

Forschungsschwerpunkt Marktprozeß und Unter- nehmensentwicklung Research Area

Market Processes and Corporate Development

(2)

Zitierweise/Citation:

Michael Tröge, The Structure of the Banking Sector, Credit Screening and Firm Risk, Discussion Paper FS IV 99 - 23, Wissenschaftszentrum Berlin, 1999.

Wissenschaftszentrum Berlin für Sozialforschung gGmbH, Reichpietschufer 50, 10785 Berlin, Tel. (030) 2 54 91 - 0

(3)

ABSTRACT

The Structure of the Banking Sector, Credit Screening and Firm Risk by Michael Tröge

With an auction model of bank competition, the relationship between the number of banks in a market, the quality of the firms and the banks' effort to carry out creditworthiness tests is analyzed. It is shown that, if the cost of information acquisition is taken into account, welfare and the firm's profit may decrease with a higher number of banks. In general a high number of banks produces more welfare with a bad sample of firms, whereas a low number of banks is preferable for a sample with a lot of good firms.

ZUSAMMENFASSUNG

Die Struktur des Bankensektors, Kreditwürdigkeitsprüfungen und Firmenrisiko

Der Aufsatz untersucht mit einem Auktionsmodell des Bankenwettbewerbs den Zusammenhang zwischen der Anzahl der im Wettbewerb stehenden Banken, der Qualität der zu finanzierenden Firmen und den Anreizen der Banken, Kreditwürdigkeitsprüfungen durchzuführen. Es wird gezeigt, daß, wenn man die Kosten des Informationserwerbs mit in Betracht zieht, die Wohlfahrt mit der Anzahl der Wettbewerber sinken kann. Im Allgemeinen erzeugt eine höhere Anzahl von Banken mehr Wohlfahrtsgewinn mit Firmen von schlechter Qualität, wohingegen ein engeres Bankenoligopol bessere Ergebnisse mit sehr guten Firmen erzielt.

(4)

4 Lqwurgxfwlrq

Zkdw lv wkh rswlpdo qxpehu ri edqnv iru dq hfrqrp|B Wklv lv d txhvwlrq idfhg e| srol0 f|pdnhuv lq yhu| glhuhqw frxqwulhv1 Lq prvw hphujlqj pdunhwv dqg wudqvlwlrq hfrqrplhv wkh edqnlqj vhfwru lv yhu| glvshuvhg1 Wkh dssduhqw ryhuedqnlqj lq wkhvh frxqwulhv kdv ehhq pdgh uhvsrqvleoh iru wkh iuhtxhqw edqnlqj fulvhv1 Fhqwudo edqnv ru uhjxodwru| djhqflhv kdyh wr ghflgh zkhwkhu wr olplw wkh qxpehu ri edqnlqj olfhqfhv1 Lq frqwudvw wr wklv/ wkh fxuuhqw zdyh ri edqnlqj phujhuv wuljjhuhg e| wkh uhod{dwlrq ri eudqfklqj uhvwulfwlrqv lq wkh Xqlwhg Vwdwhv dqg wkh prqhwdu| xqlrq lq Hxursh kdv udlvhg frqfhuqv derxw d wrr frqfhqwudwhg edqn0 lqj vhfwru1 Dqwlwuxvw dxwkrulwlhv idfh wkh txhvwlrq zkhwkhu wkhvh phujhuv zloo frqvwlwxwh d gdqjhu iru frpshwlwlrq1

Wklv sdshu dujxhv wkdw lq dgglwlrq wr wkh wudgh0r ehwzhhq vwdelolw| dqg frpshwlwlyhqhvv/

wkh lqirupdwlrqdo h!flhqf| ri wkh edqnlqj vhfwru vkrxog eh wdnhq lqwr dffrxqw zkhq ghflglqj derxw wkh rswlpdo qxpehu ri edqnv1 Lw lv vkrzq wkdw wkh lqirupdwlrqdo h!flhqw qxpehu ri edqnv ghshqgv rq wkh ulvn fkdudfwhulvwlfv ri wkh upv lq wkh hfrqrp|1 Wklv pd| khos wr h{sodlq wkh glhuhqw wuhqgv lq wkh edqnlqj vhfwruv ri ghyhorshg dqg hphujlqj frxqwulhv1

Xqolnh lq xvxdo surgxfw pdunhwv/ wkh doorfdwlrq ri fdslwdo lv qrw rqo| ghwhuplqhg e| lwv sulfh1 Edqnv fkrrvh wkhlu fxvwrphuv dqg sod| wkhuhiruh dq dfwlyh uroh lq doorfdwlqj vdylqjv dprqj dowhuqdwlyh lqyhvwphqw xvhv1 Zhoiduh dqg jurzwk duh rqo| pd{lpl}hg li wkh| gluhfw ixqgv wr wkh upv zlwk wkh kljkhvw uhwxuqv1 Wkh fuxfldo idfwru ghwhuplqlqj krz h!flhqwo|

edqnv fdq fduu| rxw wklv wdvn lv wkh edqnv* lqirupdwlrq derxw eruurzhuv1 Wklv lqirupdwlrq lv qrw iuhh/ edqnv qhhg wr uxq frvwo| fuhglwzruwklqhvv whvwv/ lq rughu wr ghwhuplqh zklfk upv wr qdqfh1 Li edqnv kdyh lqvx!flhqw lqfhqwlyhv wr vfuhhq eruurzhuv wkh| zloo hlwkhu qrw qdqfh lqqrydwlyh ulvn| upv ru wkh| zloo qdqfh wrr pdq| ulvn| upv1 Krzhyhu/ vfuhhqlqj pd| dovr ehfrph h{fhvvlyh/ lw lv lqh!flhqw li wkh vdph lqirupdwlrq lv dftxluhg vhyhudo wlphv1 Wkh lqfhqwlyhv wr fduu| rxw frvwo| vfuhhqlqj ghshqg rq wkh pdunhw vwuxfwxuh ri wkh edqn0 lqj vhfwru dv zhoo dv rq wkh h{ dqwh txdolw| ri wkh upv lq wkh hfrqrp|1 Li frpshwlwlrq lv yhu|

5

(5)

vwurqj/ iuhhulglqj dqg vslooryhu hhfwv zloo suhyhqw edqnv iurp hduqlqj wkh pdujlqdo uhqw ri lwv lqirupdwlrq froohfwlqj hruw dqg hurgh vfuhhqlqj lqfhqwlyhv1 Li wkhuh duh rqo| d ihz jrrg upv lq wkh vdpsoh edqnv kdyh qr lqfhqwlyhv wr vfuhhq ehfdxvh wkh| zloo rqo| qdqfh zlwk d orz suredelolw|1 Krzhyhu/ li prvw upv lq dq hfrqrp| duh fuhglwzruwk|/ edqnv zloo dovr qrw uxq yhu| wkrurxjk fuhglwzruwklqhvv whvwv1

Lq wklv sdshu d frqfhswxdoo| vlpsoh dxfwlrq prgho ri roljrsrolvwlf edqnlqj frpshwlwlrq lv suhvhqwhg/ zklfk doorzv wr hqgrjhql}h wkh vfuhhqlqj hruw ri edqnv1 Wkh zhoiduh hhfwv ri pdunhw frqfhqwudwlrq fdq wkhq eh fdofxodwhg iru hfrqrplhv ru up vdpsohv zlwk glhuhqw ulvn fkdudfwhulvwlfv1

Zh qg wkdw/ li wkh upv lq wkh vdpsoh duh yhu| jrrg/ d yhu| qduurz edqnlqj roljrsro| zloo shuirup ehvw1 Dgglwlrqdo edqnv zloo pdnh dgglwlrqdo xqqhfhvvdu| h{shqvhv rq lqirupdwlrq dftxlvlwlrq/ zklfk zloo ghfuhdvh zhoiduh1 Li/ krzhyhu/ wkh dyhudjh txdolw| ri wkh upv wr eh qdqfhg lv udwkhu edg/ d edqnlqj vhfwru zlwk d kljk qxpehu ri edqnv grhv d ehwwhu mre lq lghqwli|lqj wkh jrrg upv dqg wkhuhiruh surgxfhv pruh zhoiduh wkdq d qduurz roljrsro|1

Ri frxuvh ulvn fkdudfwhulvwlfv duh qrw rqo| glhuhqw ehwzhhq frxqwulhv/ exw dovr ehwzhhq hfrqrplf vhfwruv zlwklq d frxqwu|1 Lq wklv frqwh{w/ wkh prgho frxog eh sduw ri dq h{sodqdwlrq iru zk| glhuhqw edqnlqj v|vwhpv vhhp wr shuirup glhuhqwo| iru glhuhqw lqgxvwulhv1 Iru h{dpsoh lq Jhupdq|/ zkhuh ghvslwh d kljk qxpehu ri uhjlrqdo edqnv wkh edqnlqj vhfwru lv yhu| frqfhqwudwhg wkh Prqrsro| Frpplvvlrq +4<<;, h{suhvvhv vwurqj frqfhuqv wkdw lqqryd0 wlyh upv duh qrw deoh wr rewdlq qdqfh1 Lq wkh XVD zlwk lwv duwlfldoo| iudjphqwhg pdunhw/

4Fdslwdo uhtxluhphqwv/ wudqvsduhqf| uxohv dqg edqnlqj vxshuylvlrq duh rwkhu rswlrqv wr hqvxuh wkh vdihw|

dqg vrxqgqhvv ri wkh edqnlqj1

6

(6)

diwhu wkh h{shulhqfhv zlwk wkh vdylqjv dqg ordq fulvlv/ wkh pdlq frqfhuq lv d wrr h{sdqvlyh dqg ulvn| ohqglqj srolf|1

Wkh dxfwlrq dssurdfk wr edqnlqj/ xvhg lq wklv sdshu/ kdv ehhq lqlwldwhg e| Eurhfnhu +4<;<,1 Kh prghov edqn frpshwlwlrq dv d vhdohg elg frpprq ydoxh dxfwlrq/ exw grhv qrw hqgrjhql}h wkh lqirupdwlyhqhvv ri wkh edqnv* vljqdov1 Vlploduo| Ulrugdq +4<<6, rqo| hqgrj0 hql}hv d edqn*v ohqlhqf|/ exw qrw wkh lqirupdwlyhqhvv ri wkhlu fuhglwzruwklqhvv whvw1 Jhkulj +4<<;, vkrzv wkdw/ wkh frvw ri lqirupdwlrq dftxlvlwlrq pd| suhyhqw hqwu| lq edqnlqj prqrs0 rolhv

Wkh frpsohwh hqgrjhql}dwlrq ri lqirupdwlrq dftxlvlwlrq lq dq dxfwlrq lv/ lq idfw/ vwloo dq xqvroyhg sureohp lq jhqhudo dxfwlrq wkhru|1 Pdwwkhzv +4<;8, kdv ghulyhg vrph surshuwlhv ri lqirupdwlrq dftxlvlwlrq lq wkh frqwh{w ri sxuh frpprq ydoxhv dqg forvhg elgglqj exw kh lv qrw deoh wr hqvxuh wkh h{lvwhqfh ri dq htxloleulxp lq klv vhwwlqj1 Kdxvfk dqg Ol +4<<6, jhw durxqg wkh pdwkhpdwlfdo gl!fxowlhv e| xvlqj d glvfuhwh lqirupdwlrq dftxlvlwlrq whfkqrorj|

dqg vroylqj wkh htxloleulxp lq pl{hg vwudwhjlhv1 Wkh prgho lq wklv sdshu exlogv rq Uxfnhv +4<<;,/ zkr kdv dgdswhg wklv phwkrg iru prgholqj edqnlqj frpshwlwlrq1

D udqjh ri sdshuv kdyh dyrlghg wr prgho h{solflwo| frpshwlwlrq lq vfuhhqlqj dqg irfxvvhg rq krz vfuhhqlqj zloo eh lq xhqfhg e| rwkhu yduldeohv1 Fkdq/ Juhhqedxp dqg Wkdnru +4<;9, vkrz wkdw wkh vfuhhqlqj hruw ri edqnv ghfuhdvhv zlwk wkh uhxvdelolw| ri lqirupdwlrq/ khqfh zloo eh orz lq idvw fkdqjlqj/ ulvn| hqylurqphqwv1 Pdqryh/ Sdglood dqg Sdjdqr +4<<;, vkrz wkdw wkh suhvhqfh ri froodwhudo pd| ohdg wr dq lqh!flhqwo| orz vfuhhqlqj ohyho1

Lq wkh qh{w vhfwlrq ri wkh sdshu zh suhvhqw wkh prgho dqg lq vhfwlrq wkuhh wkh elgglqj htxloleulxp lv fdofxodwhg1 Vhfwlrq irxu hqgrjhql}hv lqirupdwlrq dftxlvlwlrq dqg ghulyhv wkh zhoiduh uhvxowv1 Vhfwlrq irxu frqfoxghv1

7

(7)

5 Wkh Prgho

Wkh pdunhw frqvlvwv ri ? edqnv frpshwlqj wr jlyh d fuhglw wr rqh up1 Wkh vl}h ri wkh ordq lv qrupdol}hg wr rqh1 Wkh up kdv dq lqyhvwphqw surmhfw/ zklfk lv jrlqj wr vxffhhg zlwk suredelolw| b1 Lq wklv fdvh wkh up*v uhwxuq lv fc zkhuhdv wkh xqvxffhvvixo surmhfwv uhwxuq qrwklqj dqg wkh up jrhv edqnuxsw1

E| wdnlqj d forvh orrn dw wkh up/ iru h{dpsoh e| h{dplqlqj wkh errnv/ dqdo|}lqj wkh ihdvlelolw| ri wkh up*v surmhfw dqg hydoxdwlqj wkh txdolw| ri wkh up*v vwd/ edqnv duh deoh wr jhw ehwwhu lqirupdwlrq derxw zkhwkhu wkh up lv jrlqj wr eh vxffhvvixo1 Krzhyhu/ wklv lqirupdwlrq zloo qrw frph zlwkrxw frvw1

Wklv vlwxdwlrq lv prghohg e| dvvxplqj wkdw edqnv duh htxlsshg zlwk d frvwo| lqirupd0 wlrq surgxfwlrq whfkqrorj|1 Lqyhvwlqj ^² lq lqirupdwlrq dftxlvlwlrq/ d edqn lqghshqghqwo|

uhfhlyhv zlwk suredelolw| ^ d shuihfw vljqdo derxw wkh txdolw| ri wkh up1 Wklv phdqv wkdw zlwk suredelolw| ^ wklv edqn zloo nqrz zlwk fhuwdlqw| li wkh up lv jrlqj wr vxffhhg ru qrw/

zkhuhdv zlwk suredelolw| ^ wkh edqn grhv qrw uhfhlyh dgglwlrqdo lqirupdwlrq1 Zh dvvxph wkdw edqnv gr qrw revhuyh wkh hruw lqyhvwhg e| lwv frpshwlwruv lq lqirupdwlrq dftxlvlwlrq1

Ghshqglqj rq wkhlu lqirupdwlrq/ wkh edqnv pd| rhu wkh up d fuhglw/ dvnlqj iru d uhsd|phqw ri K lq fdvh ri vxffhvv1 Dv wkh lqyhvwphqw kdv ehhq qrupdol}hg wr rqh/ wklv fruuhvsrqgv wr dq lqwhuhvw udwh ri K Wkh elgglqj lv dvvxphg wr eh forvhg l1h1 edqnv gr qrw nqrz wkh frpshwlwru*v elgv qru wkh idfw wkdw wkh frpshwlwru kdv pdgh dq rhu1 Lw lv fohdu wkdw zkhqhyhu d edqn kdv uhfhlyhg wkh lqirupdwlrq wkdw wkh up lv jrlqj wr idlo lw zloo qrw pdnh d fuhglw rhu1 Dffruglqjo|/ zkhq d edqn nqrzv wkdw wkh surmhfw lv jrlqj wr vxffhhg lw zloo dozd|v rhu fuhglw1 Lq fdvh d edqn kdv uhfhlyhg qr dgglwlrqdo lqirupdwlrq lw pd| ru pd| qrw rhu fuhglw/ ghshqglqj rq wkh h{ dqwh suredelolw| ri vxffhvv ri d up1

8

(8)

6 Htxloleulxp Elgglqj

Ehiruh hqgrjhql}lqj wkh hruw lqyhvwhg lq lqirupdwlrq dftxlvlwlrq/ wkh elgglqj vwudwhjlhv ri edqnv kdylqj lqirupdwlrq ri v|pphwulf txdolw| zloo eh fdofxodwhg1 Zkhq ghflglqj derxw wkh lqwhuhvw udwh/ d edqn idfhv d wudgh0r ehwzhhq d kljkhu surw lq wkh fdvh ri zlqqlqj dqg d kljkhu suredelolw| ri zlqqlqj exw d orzhu lqwhuhvw udwh1 Vlplodu wr rwkhu dxfwlrqv zlwk glvfuhwh ydoxhv/ wklv jdph kdv qr htxloleulxp lq sxuh vwudwhjlhv1 Li rqh edqn zhuh dozd|v elgglqj wkh vdph lqwhuhvw udwh/ wkh ehvw uhvsrqvh ri wkh rwkhu edqn zrxog eh hlwkhu wr voljkwo|

xqghufxw wklv elg ru wr dozd|v elg wkh kljkhvw srvvleoh dprxqw1 Fohduo|/ lq erwk fdvhv wkh uvw edqn*v elg lv qrw rswlpdo1 Dq htxloleulxp lq pl{hg vwudwhjlhv fdq eh ghvfulehg e| wkh elgglqj ghqvlwlhv 8EK ri edqn lq fdvh lw kdv uhfhlyhg d jrrg vljqdo/ wkh suredelolw| > ri pdnlqj dq rhu lq fdvh wkh edqn kdv qrw uhfhlyhg d vljqdo dqg wkh glvwulexwlrq ri wkh elgv MEK lq fdvh wkh edqn lv elgglqj zlwkrxw kdylqj uhfhlyhg d vljqdo1 Wkh surw ri d edqn c kdylqj uhfhlyhg d jrrg vljqdo dqg elgglqj e/ fdq eh fdofxodwhg dv iroorzv=

Z^}EK ' EK

%_?3

[

r'f

? r

^^rE 8 EK^rE ^^?33r +4,

%_?33r [

|'f

? r

|

E >^?33r3|>^|E M EK^|

&&

' EK d ^8 EK E ^ >M EKo^?3

Lq fdvh wkh edqn kdv qrw uhfhlyhg dq| lqirupdwlrq/ lwv surw lv=

Z^fEK ' b EK [?3

r'f

? r

^^rE 8 EK^rE ^^?33rd >M EKo^?33r E b

[?3

r'f

? r

^^rE ^^?33rd >M EKo^?33r

' b EK d^ E 8 EK n E ^ d >M EKoo^?3 +5,

E b d^^rn E ^ d >M EKoo^?3 +6,

Htxdwlrq 4 lv wkh surw rq wkh fuhglw exvlqhvv EK pxowlsolhg e| wkh suredelolw| ri jlylqj wkh ordq1 Li edqn kdv uhfhlyhg d jrrg vljqdo/ wkh surmhfw pxvw eh vxffhvvixo1 Wklv

9

(9)

phdqv wkdw/ li rqh ri wkh frpshwlwruv dovr uhfhlyhv d vljqdo/ wklv pxvw eh d jrrg vljqdo1 Kh zloo wkhuhiruh pdnh dq rhu zklfk/ zlwk suredelolw| 8EK c zloo eh kljkhu wkdq wkh rhu K pdgh e| edqn Zlwk suredelolw| ^c edqn zloo qrw uhfhlyh d vljqdo1 Lq wklv fdvh edqn zloo pdnh dq rhu zlwk suredelolw| > Wklv rhu zloo qrw eh dffhswhg zlwk suredelolw|

MEK Htxdwlrq 5 fdq eh ghulyhg zlwk d vlplodu uhdvrqlqj/ exw qrz/ wkh edqn*v orvv lq fdvh wkh up lv xqvxfhvvixo kdv wr eh vxewudfwhg1

Vrph suholplqdu| ghqlwlrqv zloo idflolwdwh wkh h{srvlwlrq ri wkh htxloleulxp1 Ghqlwlrq 4

@? G ' n E ^^?3Ef c +7,

K? G ' n b

b E ^^?3c +8,

>_? G '

%

^

E b^?3

Eb Ef ^?3 E b^?3

&

+9,

Wkh htxloleulxp elgglqj vwudwhjlhv duh vxppdul}hg lq wkh iroorzlqj sursrvlwlrq Sursrvlwlrq 5 Wkh htxloleulxp vwudwhjlhv duh

d, Li f K?c edqnv elg rqo| diwhu kdylqj uhfhlyhg d jrrg vljqdo=

8 EK '

;A AA AA A? AA AA AA

=

f iru K @?c

^

%

E ^

f K

_?3 &

iru K 5 d @?c o c

iru K : f

+:,

e, Lq wkh fdvh f : K?c edqnv elg zlwk jrrg dqg zlwk suredelolw| >_? zlwk lqfrqfoxvlyh vljqdov xvlqj wkh glvwulexwlrq ixqfwlrqv

8 EK '

=

f iru K _bc

^

%

b

b EK

_?3 &

iru K 5 k

bc K?

lc

iru K : K?c

+;,

:

(10)

1.5 2 2.5 3 0.2

0.4 0.6 0.8 1

F

b

Iljxuh 4= Fdvh d= Elg glvwulexwlrqv zlwk ? ' Sc b ' fSc ^ ' f dqg f '

M EK '

=

f iru K K?c

>_?

%

^

E b^?3

Eb EK ^?3 E b^?3

&

iru K 5k K?c fl

c

iru K : f

+<,

Surri1 Vhh Dsshqgl{ D

Li bf c l1h1 li wkh h{ dqwh h{shfwhg surw iurp qdqflqj d up lq wkh vdpsoh lv qhjdwlyh1 Lq wklv fdvh ehfdxvh ri K? : _b : fc vroxwlrq d, dssolhv/ l1h1 edqnv zloo qrw rhu fuhglw zlwkrxw kdylqj uhfhlyhg dgglwlrqdo lqirupdwlrq1 Iljxuh 4 vkrzv wkh fxpxodwlyh elg glvwulexwlrq ixqfwlrq lq wklv vlwxdwlrq1 Iru bf : wkh ghflvlrq wr elg zlwkrxw d jrrg vljqdo ghshqgv qrw rqo| rq wkh txdolw| ri wkh upv/ exw dovr rq wkh qxpehu ri srwhqwldo ohqghuv1 Iru kljkhu ?c wkh ydoxh ri K? frqyhujhv wr lqqlw|/ vr wkdw rqo| lq uhodwlyho| qduurz pdunhwv zlwk upv ri jrrg txdolw|/ edqnv rhu fuhglw zlwkrxw kdylqj uhfhlyhg d srvlwlyh vljqdo1 Lq jxuh 5 wkh htxloleulxp elg glvwulexwlrqv iru vxfk d vlwxdwlrq duh sorwwhg1

Lqvhuwlqj wkh htxloleulxp vwudwhjlhv lqwr wkh surw htxdwlrq uhvxowv lq wkh iroorzlqj htxl0 oleulxp surwv=

Sursrvlwlrq 6 Wkh htxloleulxp surwv ri d edqn duh

;

(11)

1.5 2 2.5 3 0.2

0.4 0.6 0.8 1

F

H

b

Iljxuh 5= Fdvh e= Htxloleulxp iru ? ' S/ b ' fbc ^ ' f dqg f ' d, Z ' b^ Ef E ^^?3c iru f K?c

e, Z ' ^ E b c iru f : K? Surri1 Vhh Dsshqgl{ D

Shukdsv vxusulvlqjo|/ lq fdvh e, wkh surw ri hdfk elgghu grhv qrw ghshqg rq wkh qxpehu ri frpshwlwruv1 Ri frxuvh/ li wkhuh duh pruh edqnv zlwk v|pphwulf vwudwhjlhv/ hdfk edqn zloo uhfhlyh wkh fuhglw zlwk d orzhu suredelolw|1 Krzhyhu/ dw wkh vdph wlph doo edqnv duh dvnlqj kljkhu lqwhuhvw udwhv1 Erwk hhfwv h{dfwo| rvhw hdfk rwkhu1

7 Lqirupdwlrq Dftxlvlwlrq dqg Zhoiduh

Kdylqj rewdlqhg wkh surwv ri edqnv srvvhvvlqj lqirupdwlrq ri d jlyhq txdolw|/ wkh dprxqw ri lqirupdwlrq edqnv zloo dftxluh lq htxloleulxp fdq eh fdofxodwhg1 Dv edqnv fdqqrw revhuyh wkh frpshwlwruv* dfwlrqv/ lqyhvwphqw lq lqirupdwlrq dftxlvlwlrq dqg wkh ghflvlrq derxw wkh fuhglw rhu zloo eh prghohg dv vlpxowdqhrxv fkrlfhv lq d rqh0vwhs jdph1 D v|pphwulf htxloleulxp ri wklv jdph fdq eh ghvfulehg e| E^c 8c Mc > c l1h1 wkh suredelolw| ri uhfhlylqj lqirupdwlrq/

wkh glvwulexwlrq ixqfwlrqv iru elgglqj zlwk dqg zlwkrxw lqirupdwlrq dqg wkh suredelolw| ri

<

(12)

elgglqj zlwkrxw lqirupdwlrq1 Lq htxloleulxp/ ghyldwlqj iurp wklv vwudwhj| zkloh nhhslqj wkh rwkhu sod|huv vwudwhjlhv {hg/ vkrxog qrw eh surwdeoh1 Krzhyhu/ wkh surw ri edqn lv qrw lq xhqfhg e| lwv fkrlfh ri lwv rzq glvwulexwlrq ixqfwlrqv dqg >/ dv lw lv lqglhuhqw ehwzhhq dq| elgv rq wkh vxssruw dqg pdnhv d orzhu surw rxw ri wkh vxssruw1 Rqfh edqn kdv pdgh wkh ghflvlrq derxw lwv lqyhvwphqw lq lqirupdwlrq dftxlvlwlrq/ lwv surw rqo| ghshqgv rq wkh frpshwlwruv* dfwlrqv1 Wkhuhiruh/ lq rughu wr suryh wkdw d jlyhq v|pphwulf vwudwhj|

frpelqdwlrq lv dq htxloleulxp/ lw uhpdlqv wr fkhfn wkdw vhfuhwo| ghyldwlqj iurp wkh fkrlfh ri ^ grhv qrw lqfuhdvh wkh edqn*v surw1 Li doo rwkhu edqnv kdyh lqyhvwhg ^c lwv surw dv d ixqfwlrq ri klv rzq fkrlfh ri ^ zloo eh lq fdvh d,

E^c ^ ' b^Ef E ^^?3 ^²c +43, dqg lq fdvh e,

E^c ^ ' ^E b ^² +44,

Ghulylqj zlwk uhvshfw wr ^ dqg lpsrvlqj v|pphwu| ohdgv wr wkh iroorzlqj frqglwlrqv iru dq htxloleulxp lq fdvh d,

Y

^ E^c ^ ' b Ef E ^^?3 2^ ' fc +45,

, b Ef E ^^?3 2^ ' fc +46,

Xqiruwxqdwho| wklv htxdwlrq grhv qrw kdyh dq dqdo|wlf vroxwlrq1 Lq fdvh e, wkh htxloleulxp frqglwlrq lv

Y

^ E^c ^ ' b 2^ ' fc

zklfk fdq eh vroyhg wulyldoo|1 Sursrvlwlrq 7 vxppdul}hv wkhvh uhvxowv1 Sursrvlwlrq 7 Wkh htxloleulxp lqirupdwlrq dftxlvlwlrq ^ lv

d, wkh vroxwlrq ri wkh htxdwlrq b Ef E ^^?3 2^ ' fc li f K?c e, ^ ' ^E3b₂ c li f : K?

43

(13)

Zhoiduh dqg frqvxphu vxusoxv +l1h1 wkh up*v surw, fdq eh hdvlo| fdofxodwhg lq fdvh d, dv qr edqn elgv zlwkrxw kdylqj uhfhlyhg d vljqdo1 Li wkhuh duh ? edqnv/ vfuhhqlqj zlwk lqwhqvlw|

^c wkh suredelolw| ri d jrrg surmhfw qrw wr eh qdqfhg lv wkhq E ^^? Khqfh wkh zhoiduh surgxfhg lv

` E^c ? ' b Ef d E ^^?o ?^² +47, Fdvh e, lv pruh frpsolfdwhg/ dv khuh wkh upv pd| eh qdqfhg hyhq li qr edqn jhwv d vljqdo1 Wkh zhoiduh surgxfhg lv qrz

` E^c ? ' b Ef d E ^^?E >_?^?o +48, E b d E E ^ >_?^?o ?^² +49, Wkh up*v dyhudjh surw fdq eh rewdlqhg e| vxewudfwlqj wkh edqnv* surw/ zklfk lv ? wlphv wkh surw ri rqh edqn/ jlyhq lq htxdwlrq 43/ iurp wkh wrwdo zhoiduh1

Ehfdxvh wkh htxloleulxp lqirupdwlrq dftxlvlwlrq ri edqnv lv qrw dqdo|wlfdoo| vroydeoh/

wkh txdolwdwlyh uhvxowv duh glvfxvvhg zlwk d qxphulfdo h{dpsoh1 Iljxuh 6 vkrzv zhoiduh dqg frqvxphu vxusoxv iru f ' 2c ' 2 dqg b ' fe dv d ixqfwlrq ri wkh qxpehu ri edqnv1 Wklv lv dq h{ dqwh xqsurwdeoh vdpsoh zkhuh zlwkrxw lqirupdwlrq dftxlvlwlrq/ ohqglqj lv qrw surwdeoh/ wkhuhiruh rqo| vroxwlrq d, dssolhv1 Xqghu wkhvh flufxpvwdqfhv zhoiduh dqg wkh up*v surw dozd|v lqfuhdvh zlwk wkh qxpehu ri edqnv1

Wklv frxog eh lqwhusuhwhg dv wkh vlwxdwlrq ri upv lq hphujlqj hfrqrplhv ru lqqrydwlyh vhfwruv1 Edqnv kdyh yhu| edg lqirupdwlrq derxw wkhvh upv1 Wkh| nqrz wkdw vrph ri wkh surmhfwv duh zruwkzkloh ehlqj qdqfhg/ exw wkh| dovr nqrz wkdw wkhuh duh d orw ri ohqghuv zlwk xquhdvrqdeoh surmhfwv/ prvw ri zklfk zloo idlo1 Zlwkrxw dftxlulqj ghwdlohg lqirupdwlrq derxw wkh upv wkh edqnv zloo qrw eh zloolqj wr ohqg1 Li wkh qxpehu ri edqnv lqfuhdvhv/ hyhu|

edqn zloo uhgxfh lwv vshqglqj rq lqirupdwlrq dftxlvlwlrq1 Qhyhuwkhohvv/ lq wkh djjuhjdwh/

wkh suredelolw| ulvhv wkdw rqh ri wkhp zloo uhfrjql}h wkh srwhqwldo ri wkh surmhfw dqg surylgh qdqfh1

44

(14)

20 40 60 80 100 0.05

0.1 0.15 0.2

0.25 ^welfare

consumer surplus

Iljxuh 6= Fdvh d, Zhoiduh dqg Frqvxphu Vxusoxv iru b ' fec ' 2 dqg f ' 2 Krzhyhu/ li wkh vdpsoh ri upv lv h{ dqwh surwdeoh/ zhoiduh uhdfwv yhu| glhuhqwo| zlwk uhvshfw wr fkdqjhv lq wkh qxpehu ri edqnv1 Dv wkh qxphulfdo vroxwlrq sorwwhg lq jxuh 7 ghprqvwudwhv/ lq ohvv frqfhqwudwhg pdunhwv/ vroxwlrq e, dssolhv1 Edqnv zloo elg/ hyhq li wkh|

kdyh qrw uhfhlyhg d srvlwlyh vljqdo1 Lq wklv fdvh zhoiduh zloo ghfuhdvh zlwk wkh qxpehu ri edqnv1 Lqwxlwlyho| lq d vlwxdwlrq zkhuh ohqglqj lv srvvleoh zlwkrxw dgglwlrqdo lqirupdwlrq/

wkh dftxlvlwlrq ri lqirupdwlrq lv ohvv vrfldoo| ydoxdeoh1 Wkh pdlq uhdvrq iru edqnv wr froohfw lqirupdwlrq lv qrw wr eh deoh wr qdqfh upv/ exw udwkhu wr jhw d frpshwlwlyh dgydqwdjh1 Dq dgglwlrqdo edqn zloo lqfuhdvh wkh ryhudoo h{shqglwxuhv rq lqirupdwlrq dftxlvlwlrq zlwkrxw vxevwdqwldoo| lqfuhdvlqj wkh suredelolw| ri d up jhwwlqj d fuhglw1 Rqo| iru d odujh qxpehu ri edqnv/ K?zloo djdlq h{fhhg f dqg zh zloo eh edfn lq fdvh d, / zkhuh edqnv gr qrw elg zlwkrxw kdylqj uhfhlyhg lqirupdwlrq1 Wklv vfhqdulr frxog eh lqwhusuhwhg dv ohqglqj wr pdwxuh upv lq d vwdeoh hqylurqphqw1 Xqghu wkhvh flufxpvwdqfhv/ edqnv srvvhvv vx!flhqw sulru lqirupdwlrq wr vhohfw d srro ri h{ dqwh surwdeoh upv1 Wzr edqnv vhhp wkhq wr eh vx!flhqw wr hqvxuh dq lqirupdwlrqdo h!flhqw dqg uhdvrqdeo| frpshwlwlyh qdqfldo pdunhw1

Lq wkh prgho/ dv wkh qxpehu ri edqnv jrhv wr lqqlw|/ zhoiduh dozd|v lqfuhdvhv djdlq dqg h{fhhgv wkh lqlwldo ohyhov1 Lq rughu wr suryh wklv uhvxow zh qhhg wkh iroorzlqj fruroodu|=

45

(15)

20 40 60 80 100 0.1

0.2 0.3 0.4 0.5 0.6

consumer surplus welfare

n

Case b) Case a)

Iljxuh 7= Fdvh d, dqg e, Zhoiduh dqg Frqvxphu Vxusoxv iru b ' fHc ' 2 dqg f ' 2 Fruroodu| 8 Lq fdvh d, wkh edqnv fkrrvh wkh zhoiduh pd{lpl}lqj lqwhqvlw| ri lqirupdwlrq dftxlvlwlrq lq wkh htxloleulxp1

Surri1 Wkh zhoiduh rswlpdo fkrlfh ri ^ lv vroxwlrq ri Y

Y^` E^c ? ' f / b Ef E ^^?3 2^ ' f +4:, Wklv uvw rughu frqglwlrq lv lghqwlfdo wr frqglwlrq 46/ ghqlqj wkh htxloleulxp lqwhqvlw| ri lqirupdwlrq dftxlvlwlrq1

Ehfdxvh iru kljk ? rqo| vroxwlrq d, lv uhohydqw zh fdq dsso| wklv fruroodu| dv ? frqyhujhv wr lqqlw|1 Lq idfw zhoiduh zloo frqyhujh wr wkh uvw ehvw ohyho1

Sursrvlwlrq 9 Iru ? $ 4/ zhoiduh frqyhujhv wr b Ef

Surri1 Lw kdv ehhq vkrzq lq sursrvlwlrq 5 wkdw iru d vx!flhqwo| kljk qxpehu ri edqnv rqo| fdvh d, dssolhv1 Ghqh k dv wkh suredelolw| wkdw wkh pdunhw dffhswv d jrrg surmhfw1 Vlqfh k ' E R^?c wkh wrwdo frvw ri dfklhylqj k zlwk ? edqnv lv ?

s^?

k₂ / zklfk frqyhujhv wr }hur iru ? $ 4 zlwk {hg k / dqg wr rqh iru {hg ? dqg k $ 41 Wkh wrwdo vxusoxv jhqhudwhg lv kb Ef ?

s^?

k₂

Dvvxph wkdw iru doo ? wkh rswl0 pdo zhoiduh grhv qrw h{fhhg d jlyhq ohyho ` b Ef Krzhyhu/ ghqlqj k ' ^{` nbEf3}_2bEf3

46

(16)

dqg d ?kc vxfk wkdw ?k

^?ks

k2

2 db Ef ` o fdq eh irxqg Lw iroorzv wkdw ?kb Ef ?k

^?ks

k2

: ` Wkhuhiruh wkh rswlpdo zhoiduh ohyho iru ?k pxvw eh kljkhu wkdq ` Dv wklv lv wuxh iru hyhu| ` b Ef / wkh rswlpdo zhoiduh ohyho dqg wkhuhiruh wkh ohyho rewdlqhg e| wkh pdunhw pxvw frqyhujh wr b Ef iru ? $ 4

Wkh ixqgdphqwdo uhdvrq iru wklv uhvxow lv wkdw zh kdg dvvxphg lqlwldo pdujlqdo frvwv ri lqirupdwlrq dftxlvlwlrq wr eh }hur1 Dv wkh qxpehu ri edqnv frqyhujhv wr lqqlw| wkh pdunhw zloo surylgh shuihfw lqirupdwlrq dw qr frvw1 Zkhuhdv wklv uhvxow lv lqwhuhvwlqj iurp dq dxfwlrq wkhruhwlf srlqw ri ylhz lw lv suredeo| qrw yhu| uhohydqw iru wkh edqnlqj vlwxdwlrq1 Wkh qxphulfdo vroxwlrqv vkrz wkdw zhoiduh frqyhujhv yhu| vorzo|1 Krzhyhu wkh surw ri hdfk edqn idoov gudvwlfdoo| dv wkh qxpehu ri edqnv lqfuhdvhv1 Li edqnv qhhg {hg frvwv wr uxq wkhlu rshudwlrqv wkh| zloo qrw eh deoh wr vxuylyh1 Li iru h{dpsoh lq wkh vlwxdwlrq ghslfwhg lq j1 7 pruh wkdq 73 edqnv fdqqrw vxuylyh lq wkh pdunhw/ wkh zhoiduh rswlpdo vxvwdlqdeoh pdunhw vwuxfwxuh zloo eh d gxrsro| udwkhu wkdq wkh pd{lpxp vxvwdlqdeoh qxpehu ri edqnv1 rqo| li wkh vdpsoh lv qrw h{ dqwh surwdeoh wkh pd{lpxp vxvwdlqdeoh qxpehu ri edqnv zloo dovr eh wkh zhoiduh rswlpdo rqh1

Lq uhdolw| ri frxuvh d edqnlqj v|vwhp kdv wr qdqfh upv ri glhuhqw txdolw|1 Li iru h{dpsoh rqh kdoi ri wkh hfrqrp| frqvlvwv ri upv dv lq j 6 dqg wkh rwkhu kdoi ri upv ri wkh w|sh ri j1 7/ wkh rswlpdo vxvwdlqdeoh qxpehu ri edqnv zloo qrw eh hlwkhu wzr ru 73/ exw vrph qxpehu ehwzhhq wkh wzr1 Dv d jlyhq edqnlqj roljrsro| shuirupv glhuhqwo| iru glhuhqw jurxsv ri upv wkh rswlpl}dwlrq kdv wr zhljkw wkh ehqhwv iru rqh jurxs djdlqvw wkh orvvhv iru dqrwkhu1 Wklv lv ylvxdol}hg rq jxuh 81 Wkh iudfwlrq ri wkh pd{lpdo vxusoxv b Ef uhdol}hg e| wkh frpshwlwlyh htxloleulxp kdv ehhq sorwwhg dv d ixqfwlrq ri wkh txdolw| ri wkh vdpsoh b D glvshuvhg edqnlqj vhfwru jhqhudwhv pruh vxusoxv zlwk lqqrydwlyh upv l1h1 iru orz bc zkhuhdv d pruh frqfhqwudwhg edqnlqj vhfwru pdlqo| ohqgv wr frqvhuydwlyh lqgxvwulhv1

47

(17)

0.2 0.4 0.6 0.8 1 0.2

0.4 0.6 0.8 1

O n=3

n=10

Iljxuh 8= Vxusoxv ryhu b Ef dv d ixqfwlrq ri b iru f ' 2c ' 2

8 Frqfoxvlrq

Wkh sdshu kdv dqdo|}hg krz edqnlqj roljrsrolhv jhqhudwh wkh lqirupdwlrq qhfhvvdu| iru dq h!flhqw doorfdwlrq ri fdslwdo lq wkh hfrqrp|1 Wklv surylghv dq dgglwlrqdo fulwhulxp iru hydoxdwlqj wkh h!flhqw qxpehu ri edqnv1 Wkh uhvxowv duh edvhg rq wzr pdlq lqvljkwv=

Zlwk orw ri edqnv/ d orw ri prqh| zloo eh vshqw rq lqirupdwlrq dftxlvlwlrq1 Krzhyhu/ wklv zloo rqo| lqfuhdvh zhoiduh li wkh lqirupdwlrq surgxfhg lv vrfldoo| ydoxdeoh l1h1 lq vlwxdwlrqv ri kljk xqfhuwdlqw| derxw wkh upv fuhglwzruwklqhvv1 Li wkh vdpsoh ri upv lv yhu| jrrg/ vr wkdw lw frxog eh qdqfhg zlwkrxw dgglwlrqdo lqirupdwlrq/ vfuhhqlqj lv vrfldoo| zdvwhixo dqg orz qxpehu ri edqnv lv suhihudeoh11

Rqh lpsolfdwlrq ri wkhvh uhvxowv lv wkdw ulvn| hfrqrplhv qhhg d glvshuvhg edqnlqj vhfwru/

zkhuhdv lq vwdeoh hfrqrplhv d ihz edqnv duh vx!flhqw1 Krzhyhu/ wkh prgho fdq dovr eh xvhg wr surylgh dq h{sodqdwlrq iru/ zk| vrph qdqfldo v|vwhpv vhhp wr eh ehwwhu vxlwhg iru fhuwdlq lqgxvwulhv1 Lq sduwlfxodu d pruh glvshuvhg edqnlqj vhfwru zloo eh ehqhfldo iru wkh lqqrydwlyh vhfwruv1 Khuh lqirupdwlrq dftxlvlwlrq lv pxfk pruh lpsruwdqw iru surgxflqj zhoiduh1 D odujhu qxpehu ri edqnv zloo lqfuhdvh wkh fkdqfh ri rqh edqn ghwhfwlqj wkh ydoxh

48

(18)

ri dq lqqrydwlyh surmhfw1 Wkhuhiruh uhjxodwlrqv vxfk dv wkh Lqwhuvwdwh Edqnlqj Dfw/ zklfk lv uhvsrqvleoh iru dq duwlfldoo| odujh qxpehu ri edqnv lq wkh XVD/ pd| qrw eh qhfhvvdulo|

Wkh sdshu lv dovr lqwhuhvwlqj iurp d sxuho| dxfwlrq wkhruhwlf ylhz1 Exorz dqg Nohpshuhu +4<<9, kdyh vkrzq wkdw h{foxglqj elgghuv iurp dq dxfwlrq zloo qrw lqfuhdvh wkh vhoohuv surw1 Lw kdv ehhq vkrzq deryh wkdw wklv lv qrw wuxh dq| pruh zkhq lqirupdwlrq dftxlvlwlrq lv wdnhq lqwr dffrxqw1 Wklv frxog h{sodlq iru h{dpsoh/ zk| lqyhvwphqw edqnv w|slfdoo| fkrrvh rqo| d vpdoo qxpehu ri srwhqwldo dftxluhv zkhq vhoolqj d frpsdq|1

49

(19)

Dsshqgl{

D Surri ri sursrvlwlrq 5 dqg 6

Lq rughu wr yhuli| wkdw wkh glvwulexwlrq ixqfwlrqv :/ ; dqg < frqvwlwxwh dq htxloleulxp lw kdv wr eh vkrzq wkdw edqn zlwk d jlyhq lqirupdwlrq lv lqglhuhqw rq wkh vxssruw dqg pdnhv orzhu surwv iurp elgglqj rxwvlgh wkh vxssruw1 Dv wkh surri rqo| uhtxluhv vlpsoh dojheudlf pdqlsxodwlrq lw lv rqo| vnhwfkhg lq wkh iroorzlqj1

Fdvh d, elgglqj rqo| zlwk jrrg vljqdov Lqvhuwlqj wkh elgglqj glvwulexwlrq : ri wkh

? frpshwlwruv lq 4/ dqg revhuylqj wkdw M EK ' f/ zh rewdlq dv wkh surw ri d edqn/

kdylqj uhfhlyhg d jrrg vljqdo dqg elgglqj lq wkh lqwhuydo

bc f G Z^}EK ' EK d ^8 EK E ^ >_?M EKo^?3

' EK

%

E ^

f K

_?3 &_?3

+4;,

' Ef E ^^?3 +4<,

Khqfh klv h{ dqwh h{shfwhg surw lv=

Z ' b^ Ef E ^^?3c zklfk suryhv sduw d, ri sursrvlwlrq D1

Elgglqj orzhu wkdq _bczloo ghfuhdvh wkh surw dv lw zloo qrw lqfuhdvh wkh suredelolw| ri zlqqlqj frpsduhg wr elgglqj h{dfwo| dw _bc exw ghfuhdvh wkh lqwhuhvw udwh lq wkh fdvh ri zlqqlqj1

Fdvh e, elgglqj iru jrrg dqg lqfrqfoxvlyh vljqdov= wkh lqglhuhqfh ri d edqn kdylqj uhfhlyhg d jrrg vljqdo fdq eh fdofxodwhg dv deryh1 Soxjjlqj wkh htxloleulxp glvwulex0 wlrqv ; dqg < ri wkh frpshwlwruv lqwr wkh surw ixqfwlrq 5/ vkrzv wkdw d edqn kdylqj uhfhlyhg

4:

(20)

dq lqfrqfoxvlyh vljqdo lv lqglhuhqw rq wkh vxssruw dqg pdnlqj wkhuh }hur surwv1 Wkhuhiruh lw lv dovr lqglhuhqw ehwzhhq elgglqj dqg qrw elgglqj1 Lw zloo pdnh orvvhv iurp elgglqj ehorz K?1

Uhihuhqfhv

^4` Eurhfnhu/ W1 +4<<3,/ Fuhglw0Zruwklqhvv Whvwv dqg Lqwhuedqn Frpshwlwlrq/ Hfrqrphw0 ulfd/ 8;=75<07851

^5` Exorz/ M1L dqg S1 Nohpshuhu +4<<9, Dxfwlrqv yhuvxv Qhjrwldwlrqv/ Dphulfdq Hfrqrplf Uhylhz ;9=4;304<71

^6` Fdplqdo/ U1 dqg F1 Pdwxwhv +4<<:,/ Edqn Vroyhqf|/ Pdunhw Vwuxfwxuh dqg Prqlwrulqj Lqfhqwlyhv/ Edufhorqd/ Lqvwlwxw g*Dqdolvl Hfrqrplfd/ Plphr1

^7` Fdplqdo/ U1 dqg F1 Pdwxwhv +4<<:, Fdq Frpshwlwlrq lq wkh Fuhglw pdunhw eh H{fhvvlyhB FHSU Glvfxvvlrq Sdshu Qr1 4:581

^8` Fduolq/ Z1 dqg F1 Pd|hu +4<<;,/ Ilqdqfh/ Lqyhvwphqw dqg Jurzwk/ R{irug / plphr1

^9` Pdqryh/ P/ D1 Sdglood dqg P1 Sdjdqr +4<<, Froodwhudo yv1 Surmhfw Vfuhhqlqj= D Prgho ri Od}| Edqnv/ FVHI Glvfxvvlrq Sdshu/ Ilvfldqr1

^:` Fkdq/ \10V1/ V1 Juhhqedxp dqg D1 Y1 Wkdnru +4<;9,/ Lqirupdwlrq Uhxvdelolw|/ Frpsh0 wlwlrq dqg Edqn Dvvhw Txdolw|/ Mrxuqdo ri Edqnlqj dqg Ilqdqfh/ 43=57605861

^;` Jhkulj/ W1 +4<<9,/ Pdunhw Vwuxfwxuh/ Prqlwrulqj dqg Fdslwdo Dghtxdf| Uhjxodwlrq/

Vzlvv Mrxuqdo ri Hfrqrplfv dqg Vwdwlvwlfv/ 465/ +725,=9;80:351

^<` Jhkulj/ W1 +4<<;,/ Vfuhhqlqj/ Furvv0Erughu Edqnlqj dqg wkh Doorfdwlrq ri Fuhglw/ Xql0 yhuvlwçw Iuhlexuj/ Plphr1

4;

(21)

^43` Jruwrq/ J1 dqg D1 Zlqwrq +4<<;,/ Edqnlqj lq Wudqvlwlrq Hfrqrplhv= Grhv H!flhqf|

Uhtxluh Lqvwdelolw|B Mrxuqdo ri Prqh|> Fuhglw dqg Edqnlqj/ 63=95409881

^44` Kdxvfk/ G1 dqg O1 Ol +4<<6,/ D Frpprq Ydoxh Dxfwlrq Prgho zlwk Hqgrjhqrxv Hqwu|

dqg Lqirupdwlrq Dftxlvlwlrq/ Hfrqrplf Wkhru|/ 6=64806671

^45` Ndjho/ M1 K1 dqg G1 Ohylq +4<<;,/ Frpprq Ydoxh Dxfwlrqv zlwk Lqvlghu Lqirupdwlrq/

iruwkfrplqj lq Hfrqrphwulfd1

^46` Ndqqldlqhq/ Y1 xqg U1 Vwhqedfnd +4<<;,/ Surmhfw Prqlwrulqj dqg Edqnlqj Frpshwlwlrq xqghu Dgyhuvh Vhohfwlrq/ Zlvvhqvfkdiwv}hqwuxp Ehuolq iÿu Vr}ldoiruvfkxqj/ Glvfxvvlrq Sdshu <:/561

^48` Plojurp/ S1 dqg U1 M1 Zhehu +4<;5,/ D wkhru| ri dxfwlrqv dqg Frpshwlwlyh Elgglqj/

Hfrqrphwulfd/ 83=43;<044561

^49` Plwxvfk/ N1 +4<<;,/ Lqirupdwlrq Dftxlvlwlrq e| Plggohphq Glvfxvvlrq Sdshu/ Iuhlh Xqlyhuvlwçw Ehuolq1

^4:` RHFG +4<;<,/ Frpshwlwlrq lq Edqnlqj/ Rujdqlvdwlrq iru Hfrqrplf Fr0rshudwlrq dqg Ghyhorsphqw/ Sdulv1

^4;` Ulrugdq/ P1K1 +4<<6,/ Frpshwlwlrq dqg Edqn Shuirupdqfh= D wkhruhwlfdo Shuvshf0 wlyh/ Lq= F1Pd|hu dqg [1 Ylyhv/ hglwruv/ Fdslwdo Pdunhwv dqg Ilqdqfldo Lqwhuphgldwlrq/

Fdpeulgjh Xqlyhuvlw| Suhvv= 65;06761

^4<` Uxfnhv/ P1 +4<<;,/ Edqn Frpshwlwlrq/ Fuhglw Vwdqgdugv dqg Frusrudwh Frqvhuydwlvp/

Zrunlqj Sdshu Xqlyhuvlwçw Pdqqkhlp1

4<

(22)

^53` Vplwk/ W1 +4<<;,/ Edqnlqj Frpshwlwlrq dqg Pdfurhfrqrplf Shuirupdqfh/ Mrxuqdo ri Prqh|> Fuhglw dqg Edqnlqj/ 63=:<60;481

^54` \dqhooh/ P1 R1 +4<<:,/ Edqnlqj Frpshwlwlrq dqg Pdunhw H!flhqf|/ Uhylhz ri Hfrqrplf Vwxglhv/ 97=548056<1

53

(23)

Bücher des Forschungsschwerpunkts Marktprozeß und Unternehmensentwicklung Books of the Research Area Market Processes and Corporate Development

(nur im Buchhandel erhältlich/available through bookstores)

Horst Albach, Ulrike Görtzen, Rita Zobel (Hg.) Information Processing as a Competitive Advantage of Japanese Firms

1999, edition sigma Dieter Köster

Wettbewerb in Netzproduktmärkten

1999, Deutscher Universitäts-Verlag/Gabler Verlag Christian Wey

Marktorganisation durch Standardisierung: Ein Beitrag zur Neuen Institutionenökonomik des Marktes

1999, edition sigma

Horst Albach, Meinolf Dierkes, Ariane Berthoin Antal, Kristina Vaillant (Hg.)

Organisationslernen – institutionelle und kulturelle Dimensionen

1998, edition sigma

Lars Bergman, Chris Doyle, Jordi Gual, Lars Hultkrantz, Damien Neven, Lars-Hendrik Röller, Leonard Waverman

Europe’s Network Industries: Conflicting Priorities - Telecommunications

Monitoring European Deregulation 1

1998, Centre for Economic Policy Research Manfred Fleischer

The Inefficiency Trap Strategy Failure in the

German Machine Tool Industry 1997, edition sigma

Christian Göseke

Information Gathering and Dissemination The Contribution of JETRO to

Japanese Competitiveness

1997, Deutscher Universitäts-Verlag Andreas Schmidt

Flugzeughersteller zwischen globalem Wettbewerb und internationaler Kooperation Der Einfluß von Organisationsstrukturen auf die Wettbewerbsfähigkeit von

Hochtechnologie-Unternehmen 1997, edition sigma

Horst Albach, Jim Y. Jin, Christoph Schenk (eds.) Collusion through Information Sharing?

New Trends in Competition Policy 1996, edition sigma

Stefan O. Georg

Die Leistungsfähigkeit japanischer Banken Eine Strukturanalyse des Bankensystems in Japan

1996, edition sigma Stephanie Rosenkranz

Cooperation for Product Innovation 1996, edition sigma

Horst Albach, Stephanie Rosenkranz (eds.) Intellectual Property Rights and Global Competition - Towards a New Synthesis 1995, edition sigma.

David B. Audretsch

Innovation and Industry Evolution 1995, The MIT Press.

Julie Ann Elston

US Tax Reform and Investment: Reality and Rhetoric in the 1980s

1995, Avebury Horst Albach

The Transformation of Firms and Markets:

A Network Approach to Economic

Transformation Processes in East Germany Acta Universitatis Upsaliensis, Studia Oeconomiae Negotiorum, Vol. 34

1994, Almqvist & Wiksell International (Stockholm).

Horst Albach

"Culture and Technical Innovation: A Cross- Cultural Analysis and Policy

Recommendations"

Akademie der Wissenschaften zu Berlin (Hg.) Forschungsbericht 9, S. 1-597

1994, Walter de Gruyter.

Horst Albach

Zerissene Netze. Eine Netzwerkanalyse des ostdeutschen Transformationsprozesses 1993, edition sigma.

Zoltan J. Acs/David B. Audretsch (eds)

Small Firms and Entrepreneurship: An East- West Perspective

1993, Cambridge University Press.

Anette Boom

Nationale Regulierungen bei internationalen Pharma-Unternehmen: Eine theoretische Analyse der Marktwirkungen

1993, Nomos Verlagsgesellschaft.

(24)

DISCUSSION PAPERS 1998

Horst Albach Unternehmensgründungen in Deutschland FS IV 98 - 1 Potentiale und Lücken

Dietmar Harhoff Vertical Organization, Technology Flows and R&D FS IV 98 - 2 Incentives - An Exploratory Analysis

Karel Cool Der Einfluß des tatsächlichen und des potentiellen FS IV 98 - 3 Lars-Hendrik Röller Wettbewerbs auf die Rentabilität von Unternehmen

Benoit Leleux der pharmazeutischen Industrie

Horst Albach Blühende Landschaften? FS IV 98 - 4

Ein Beitrag zur Transformationsforschung

Shiho Futagami Shukko in Japanese Companies and its Economic FS IV 98 - 5 Tomoki Waragai and Managerial Effects

Thomas Westphal

Dietmar Harhoff Lending Relationships in Germany: Empricial FS IV 98 - 6 Timm Körting Results from Survey Data

Johan Lagerlöf Are We Better Off if Our Politicians Know FS IV 98 - 7 How the Economy Works?

Justus Haucap Location Costs, Product Quality, and Implicit FS IV 98 - 8 Christian Wey Franchise Contracts

Jens Barmbold

Manfred Fleischer Patenting and Industrial Performance: The Case FS IV 98 - 9 of the Machine Tool Industry

Dieter Köster Was sind Netzprodukte? - Eigenschaften, FS IV 98 - 10 Definition und Systematisierung von Netzprodukten

Andreas Blume Coordination and Learning with a Partial Language FS IV 98 - 11 Andreas Blume An Experimental Investigation of Optimal Learning FS IV 98 - 12

Uri Gneezy in Coordination Games

Andreas Blume Learning in Sender-Receiver Games FS IV 98 - 13 Douglas V. DeJong

George R. Neumann Nathan E. Savin

Hans Mewis The Stability of Information Cascades: How Herd FS IV 98 - 14 Behavior Breaks Down

Lars-Hendrik Röller The Incentives to Form Research Joint Ventures: FS IV 98 - 15 Mihkel M. Tombak Theory and Evidence

Ralph Siebert

Christine Zulehner Econometric Analysis of Cattle Auctions FS IV 98 - 16 Catherine Matraves Market Structure, R&D and Advertising FS IV 98 - 17

in the Pharmaceutical Industry

(25)

DISCUSSION PAPERS 1999

Suchan Chae Bargaining Power of a Coalition in Parallel Bargaining: FS IV 99 - 1 Paul Heidhues Advantage of Multiple Cable System Operators

Christian Wey Compatibility Investments in Duopoly with Demand FS IV 99 - 2 Side Spillovers under Different Degrees of Cooperation

Horst Albach Des paysages florissants? Une contribution FS IV 99 - 3 à la recherche sur la transformation

Jeremy Lever The Development of British Competition Law: FS IV 99 - 4 A Complete Overhaul and Harmonization

Damien J. Neven Union Power and Product Market Competition: FS IV 99 - 5 Lars-Hendrik Röller Evidence from the Airline Industry

Zhentang Zhang

Justus Haucap The Incentives of Employers’ Associations to FS IV 99 - 6 Uwe Pauly Raise Rivals’ Costs in the Presence of

Christian Wey Collective Bargaining

Jianbo Zhang Asymptotic Efficiency in Stackelberg Markets FS IV 99 - 7 Zhentang Zhang with Incomplete Information

Justus Haucap Standortwahl als Franchisingproblem FS IV 99 - 8 Christian Wey

Yasar Barut A Comparison of Multiple-Unit All-Pay and FS IV 99 - 9 Dan Kovenock Winner-Pay Auctions Under Incomplete

Charles Noussair Information

Jim Y. Jin Collusion with Private and Aggregate Information FS IV 99 - 10

Jos Jansen Strategic Information Revelation and Revenue Sharing FS IV 99 - 11 in an R&D Race with Learning Labs

Johan Lagerlöf Incomplete Information in the Samaritan's Dilemma: FS IV 99 - 12 The Dilemma (Almost) Vanishes

Catherine Matraves Market Integration and Market Structure in the FS IV 99 - 13 European Soft Drinks Industry: Always Coca-Cola?

Pinelopi Koujianou Goldberg The Evolution of Price Discrimination in the FS IV 99 - 14 Frank Verboven European Car Market

Olivier Cadot A Political Economy Model of Infrastructure FS IV 99 - 15 Lars-Hendrik Röller Allocation: An Empirical Assessment

Andreas Stephan

Holger Derlien Industriestandort mit Vorbildfunktion? FS IV 99 - 16 Tobias Faupel Das ostdeutsche Chemiedreieck

Christian Nieters

(26)

(27)

Absender/From:

Versandstelle - WZB Reichpietschufer 50 D-10785 Berlin

BESTELLSCHEIN / ORDERFORM Bitte schicken Sie bei Ihren Bestellungen von WZB-Papers unbedingt eine 1-DM-Briefmarke pro paper und einen an Sie adressierten Aufkleber mit. Danke.

Bitte schicken Sie mir aus der Liste der

Institutsveröffentlichungen folgende Papiere zu:

For each paper you order please send a "Coupon- Réponse International" (international money order) plus a self-addressed adhesive label. Thank You.

Please send me the following papers from your Publication List:

Paper Nr./No. Autor/Author + Kurztitel/Short Title

(28)