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In this paper, I present a structural discrete-choice model for deposit services. This model produces estimates of different supply functions at the MSA and bank levels to provide evidence that multimarket contacts in the banking system leads to a highly competitive behavior in the United States. Combining this information with detailed cost data per bank at the national level, I trace the degree of competition in the banking system and perform compensatory analysis. I derive and estimate the model under three different assumptions: Nash-Bertrand competition, perfect collusion, and partially collusive equilibrium. Further, I execute counterfactual exercises to understand the impact of competition on consumer welfare.


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