[2023학년도 1학기]

경제학부 특강(세미나) 9차

– 일시 : 6월 8일(목) 12시~13시

– 장소 : 미래관 906호

– 주제 : Does the Internet Replace Brick-and-Mortar Bank Branches?

– 연사 : 김민혜 교수(Oklahoma State University)

–  Abstract :

This paper examines the effect of the internet on market structure and consumer welfare in the US retail banking industry. The internet is expected to be a substitute for bank branches as consumers can use more online banking and this effect can lead to branch closures. On the other hand, the internet can be a complementary to branches because consumers can more easily make deposits or open a new bank account online when more high-speed internet is available which can expand markets, and in turn, increase the number of bank branches. Observing the changes in the number of rival bank branches after the change in the internet, banks can open or close more branches. I estimate a dynamic branch opening-closure game in continuous time to quantify these opposing effects. The results show that more internet connections can cause consumer welfare loss due to branch closures when the internet penetration is not sufficiently high. However, if internet connections are provided to more than 80% of households, consumers experience a welfare gain. The gains are especially large in small and low-income markets