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Rivalidad por clientes en el mercado cambiario venezolano
[Rivalry for customers in the Venezuelan exchange marke]

Author

Listed:
  • Pedauga, Luis Enrique
  • Pineda, Julio
  • Dorta, Miguel
Abstract
We try to establish which is the structure that best defines the venezuelan foreign exchange market. Asking ourselves whether there exist a group of agents able to exert market power. We assume that the flow of currency between banks follows a first order stochastic Markov process of first order, in which competition is understood as a dynamic process of rivalry for trading the largest volume of currency under free convertibility. We use daily aggregate currency flows across banks to estimate probabilities of transition, which can be interpreted as approximations to the degree of rivalry between banks. In addition competition for currencies transactions was studied in a dynamic way.

Suggested Citation

  • Pedauga, Luis Enrique & Pineda, Julio & Dorta, Miguel, 2004. "Rivalidad por clientes en el mercado cambiario venezolano [Rivalry for customers in the Venezuelan exchange marke]," MPRA Paper 62446, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:62446
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    File URL: https://mpra.ub.uni-muenchen.de/62446/1/MPRA_paper_62446.pdf
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    References listed on IDEAS

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    1. Rogers, Richard T., 1985. "A Structure- Price- Cost Margin Model Estimated Over Time Food and Tobacco Product Classes, 1954 to 1977," Working Papers 202999, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
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    5. Bresnahan, Timothy F., 1989. "Empirical studies of industries with market power," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 17, pages 1011-1057, Elsevier.
    6. Rojas, Mariano, 1997. "Competencia por clientes en la industria bancaria de México," El Trimestre Económico, Fondo de Cultura Económica, vol. 64(253), pages 47-73, enero-mar.
    7. Gilbert, R Alton, 1984. "Bank Market Structure and Competition: A Survey," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 16(4), pages 617-644, November.
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    Cited by:

    1. Hernando Vargas & Rocío Betnacourt, 2006. "Pension Fund Managers Behavior In The Foreign Exchange Market," Borradores de Economia 391, Banco de la Republica de Colombia.

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    More about this item

    Keywords

    Forex exchange; rivalry; markov chain;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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