Strategic Behavior between a Bank and a Microfinance Institution: The Role of Psychological Distance and Education Level - Université Toulouse - Jean Jaurès Access content directly
Preprints, Working Papers, ... Year : 2015

Strategic Behavior between a Bank and a Microfinance Institution: The Role of Psychological Distance and Education Level

Abstract

In Hotelling’s fundamental model (1929), the geographical distance and high transportation costs grant firms present in a market a certain power over local buyers in their neighborhoods. Starting from his model, this study shows that in the competition between a bank and a microfinance institution (MFI), geographical distance and transportation costs alone are no longer sufficient for attributing market power to the firms present. In fact, the introduction of psychological distance and education level in the model alter the Hotelling’s results. Psychological proximity (trust) and the educational level of the client play determinant roles in dividing the credit market between a bank and an MFI.
Fichier principal
Vignette du fichier
StrategicBehaviour_F-Fall.pdf (294.47 Ko) Télécharger le fichier
Origin : Publisher files allowed on an open archive
Loading...

Dates and versions

hal-01566392 , version 1 (19-02-2019)

Licence

Attribution

Identifiers

  • HAL Id : hal-01566392 , version 1

Cite

François Fall, Thanh Tam Nguyen-Huu. Strategic Behavior between a Bank and a Microfinance Institution: The Role of Psychological Distance and Education Level. 2015. ⟨hal-01566392⟩
56 View
112 Download

Share

Gmail Facebook X LinkedIn More