Journal Articles
Conflicts of Interest, Information Provision and Competition in Banking
Authors
Bolton P, Shapiro J, Freixas X
UPF authors
Type
Scholarly articles
Journal title
Journal of Financial Economics
Publication year
2007
Volume
85
Pages
297-330
ISSN
0304-405X
Publication State
Published
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.
Complete citation
Bolton P, Shapiro J, Freixas X. Conflicts of Interest, Information Provision and Competition in Banking. Journal of Financial Economics 2007; 85( ): 297-330.
