Banks are highly leveraged institutions, potentially attracted to speculative lending even without deposit insurance. A counterbalancing incentive to lend prudently is the risk of loss of charter value, which depends on future rents. We show in a dynamic model that current concentration does not...

This paper explores the uses and limitations of a qualitative layer model in order to understand the structure and dynamics of the Infocommunications Industry from an evolutionary perspective. It is concluded that although there are some important drawbacks in using such a model, a sufficient...