Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
960604 | Journal of Financial Economics | 2007 | 34 Pages |
Abstract
In some markets sellers have better information than buyers over which products best serve a buyer's needs. Depending on the market structure, this may lead to conflicts of interest in the provision of information by sellers. This paper studies this issue in the market for financial services. The analysis presents a new model of competition between banks, where price competition influences the ensuing incentives for truthful information revelation. We also compare conflicts of interest in two different firm structures, specialized banking and one-stop banking.
Related Topics
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Accounting
Authors
Patrick Bolton, Xavier Freixas, Joel Shapiro,