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Costos hundidos endógenos y la introducción de nuevos productos: el sistema bancario uruguayo
| Content Provider | Semantic Scholar |
|---|---|
| Author | Bergara, Mario E. |
| Copyright Year | 1999 |
| Abstract | Firms that exert some monopoly power in one market and introduce a new good whose demand is determined by a much broader set of consumers might be forced to change the way they compete. Such firms will require * Banco Central del Uruguay. Se agradecen los utiles comentarios de Roger Craine, Amadeo DiLodovico, Matthew Rabin, Pablo Spiller, Patricia Triunfo, Miguel Villas-Boas, y Glenn Woroch. Revista de Economia Segunda Epoca Vol. VI N° 2 Banco Central del Uruguay 6 EL SISTEMA BANCARIO URUGUAYO technological progress to reduce setup costs of the second good in order to introduce a new product and exploit the resulting scope economies. This requirement will be less restrictive when potential demand for the new good is higher, when the number of firms is lower, and/or there exist greater scope economies between the new and the old products. In the case that this new product is a “quality” good, the resulting competitive process may include advertising outlays spent by the competing firms, affecting the degree of competition in the old market. An empirical application is developed by using the case of the Uruguayan private banking sector. The analysis suggests that larger institutions tended to pursue more aggressive advertising strategies to maintain or improve their market positions than smaller firms. Market power in the financial intermediation market has considerably declined after the introduction of new products in the early nineties. REVISTA DE ECONOMIA 7 |
| Starting Page | 5 |
| Ending Page | 38 |
| Page Count | 34 |
| File Format | PDF HTM / HTML |
| Volume Number | 6 |
| Alternate Webpage(s) | http://www.bvrie.gub.uy/local/File/REVECO/1999/Bergara.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
