This paper presents a two-period model of branching behaviour and competition in retail banking. It extends a static model, from which it borrows most of its theoretical underpinnings, by adding information on banks branching strategies under the (realistic) assumption that it takes time and...

This paper analyses the relation between competition and concentration in the banking sector. The empirical answer is given by testing a monopolistic competition model of bank branching behaviour on individual bank data at county level (départements and provinces) in France and Italy. We...