Dynamic Competition in Negotiated Price Markets

• 成果类型: Article
• 署名作者: Allen, Jason; Li, Shaoteng
• 署名单位: Bank of Canada; University of Wisconsin System; University of Wisconsin Madison
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.13408
• 发表日期: 2025
• 页码: 561-614
• 关键词: switching costs; search costs; MODEL; identification; INFORMATION; frictions; CHOICE; debt

摘要

Using contract-level data for the Canadian mortgage market, this paper provides evidence of an invest-and-harvest pricing pattern. We build a dynamic model of price negotiation with search and switching frictions to capture key market features. We estimate the model and use it to investigate the effects of market frictions and the resulting dynamic competition on borrowers' and banks' payoffs. We show that dynamic pricing and the presence of search and switching costs have important implications for public policies.