We show that competing firms relax overall competition by lowering future barriers to entry. We illustrate our findings …-period profits. This dampens competition for serving the first-period market. …

How do banks react to increased interbank competition? Recent banking theory offers conflicting predictions about the … impact of competition on bank orientation - i.e., the choice of relationship based versus transactional banking - and bank … industry specialization. We empirically investigate the impact of interbank competition on bank branch orientation and …

We address the question of how lending market competition, measured by the bargaining power of banks, affects the … agency costs of debt finance. It is shown that intensified lending market competition will lead to lower lending rates and … lending market competition will reduce the agency cost of debt financing. Hence, our analysis does not lend support to the …