Title: On Relationship on Market Structure and Product Differentiation of Chinese Commercial Bank
Abstract:The market structure of Chinese commercial bank had a higher degree of oligopoly,the product differentiation was not significant.The customers' first consideration was to get the banks' convenient ser...The market structure of Chinese commercial bank had a higher degree of oligopoly,the product differentiation was not significant.The customers' first consideration was to get the banks' convenient service and the numbers of the outlet amount determined the customer's choice to a large extent.Small and medium sized banks had much less outlets than big banks and gained market share through price competition which resulted in Bertrand Paradox.But when product differentiation has been introduced into market competition,the bank could avoid vicious price competition and got more market share as long as the efficiency was highly enough to make the market structure change.Government can adjust the market structure of banking by encouraging small and medium sized banks to carry out the differentiation strategy.Read More
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
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