spread paid by risky borrowers in the mortgage market. There is evidence that the terms of access to external finance matter …

market. We find that lender banks with greater bargaining power over their borrowers charge higher interest rates, while the … euro interbank market. We examine the implications of these findings for the transmission of euro-area monetary policy. …

experiments. We show that PWYW is a very aggressive strategy that achieves almost full market penetration. It can be profitable if … costs are high and if there are no such benefits. It reduces price competition and segments the market. In a second … experiment, we generate promotional benefits endogenously. We show that PWYW monopolizes the follow-up market but fails to be …