Corporate Strategy for Mexican Banks and Market Contestability Theory: a Review
نویسندگان
چکیده
The aim of this essay is to select the best framework to asses the effect regulationpolicy has on banks' corporate strategy. The review of competing hypothesis findsContestable Market Theory the most suitable vehicle to perform that assessment. TheMexican case illustrates empirical applications. The paper’s contribution is pointing outthe areas most needed of attention. Succinctly these are, first, unsolved questionsregarding the application of SCP's hypothesis in banking studies. Second, forthcomingempirical research should establish the gains in banks' efficiency after successfulregulation policy. This second problem, it's suggested, could be approach throughpanel data analysis. However, both Contestable Market Theory and banks' strategycould dramatically improve by incorporating recent developments in Option PricingTheory.
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