Non-price strategic behavior: The case of bank branches

Moshe Kim, Bent Vale

Research output: Contribution to journalArticlepeer-review


We perform an empirical study of banks' branching decisions as a strategic non-price variable in an oligopolistic setting. Using panel data of banks from Norway, we find clear evidence that banks act strategically in their branching decisions, taking into consideration the future response from rival banks. The analysis is applied to a unique data set which covers the entire banking sector during both pre- and post-banking crisis periods, where very different types of conduct are found in each of these periods both for banks and borrowers. Moreover, we find that a bank specific branch-network does not confer externality on other banks. As a result branch network affects only market shares but not market size.

Original languageEnglish
Pages (from-to)1583-1602
Number of pages20
JournalInternational Journal of Industrial Organization
Issue number10
StatePublished - Dec 2001


  • Bank branch networks
  • Borrowers
  • G21
  • L13
  • Norway
  • Oligopolistic setting

ASJC Scopus subject areas

  • Industrial relations
  • Aerospace Engineering
  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management
  • Industrial and Manufacturing Engineering


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