Strategic competition in retail banking under expense preference behavior
نویسندگان
چکیده
This paper presents a theoretical analysis of strategic competition in retail banking when some of the ®rms show expense preference behavior. The literature on expense preference behavior by banking ®rms is fairly large, but to our knowledge, so far, the strategic interaction between pro®t maximizing banks and banks with expense preference behavior has not been investigated. The paper has also an empirical interest since it is motivated by the current situation in Spanish retail banking where commercial banks, pro®t maximizers, compete with savings banks, non pro®t maximizers. Ó 2000 Elsevier Science B.V. All rights reserved. JEL classi®cation: G21
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