Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Friday, June 26, 2009

Market Power versus Efficient-Structure in Arab GCC Banking

Posted by D. Daniel Sokol

Saeed Al-Muharrami - Sultan Qaboos University, Oman and Kent Matthews - Cardiff Business School look at Market Power versus Efficient-Structure in Arab GCC Banking.

ABSTRACT: This paper evaluates the performance of the Arab GCC banking industry in the context of the Structure-Conduct-Performance hypothesis in the period 1993-2002. The paper uses panel estimation differentiating between bank fixed effects and country fixed effects. It examines the Relative-Market-Power and the Efficient-Structure hypotheses differentiating between the two by employing a non-parametric measure of technical efficiency, and finds that the banking industry in the Arab GCC countries is best explained by the mainstream SCP hypothesis. The empirical results do not find any support for the Hicks (1935) "Quiet Life" version of the market power hypothesis.

http://lawprofessors.typepad.com/antitrustprof_blog/2009/06/market-power-versus-efficientstructure-in-arab-gcc-banking.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef01157147cc19970b

Listed below are links to weblogs that reference Market Power versus Efficient-Structure in Arab GCC Banking:

Comments

Post a comment