@inbook{d686cd25ee8a43109f0df3b0df18aba6,
title = "The industrial organization of financial markets",
abstract = "This chapter discusses recent developments in the literature involving applications of industrial organization methods to finance. We structure our discussion around a simple model of a financial intermediary that concentrates its attention either on (i) the retail market and hence engages in a traditional maturity transformation business by accepting funds that can be used to invest in risky projects (loans), or (ii) the investment business, financing its operations on the “wholesale” market and making markets or investing in higher return riskier projects. Our discussion is centered around the analysis of market structure and competition in each of these markets, focusing in turn on (i) primary and secondary markets for government and corporate debt, (ii) interbank loans, (iii) markets for retail funding, and (iv) credit markets, including mortgages.",
keywords = "Financial markets, Imperfect competition, Information frictions, Market power, Regulation, Retail credit, Retail funding, Wholesale markets",
author = "Robert Clark and Houde, {Jean Fran{\c c}ois} and Jakub Kastl",
note = "Publisher Copyright: {\textcopyright} 2021 Elsevier B.V.",
year = "2021",
month = jan,
doi = "10.1016/bs.hesind.2021.11.015",
language = "English (US)",
isbn = "9780323988872",
series = "Handbook of Industrial Organization",
publisher = "Elsevier B.V.",
number = "1",
pages = "427--520",
editor = "Kate Ho",
booktitle = "Handbook of Industrial Organization, Volume 5",
edition = "1",
}