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dc.contributor.authorZhang, Kunyuan
dc.date.accessioned2020-08-31T12:05:59Z
dc.date.available2020-08-31T12:05:59Z
dc.identifier.urihttp://hdl.handle.net/10222/79766
dc.description.abstractIn order to find how the process of interest rate liberalization influences the pricing strategy of dominant lenders in China’s loan market and their mark-up power, I establish a pricing model to examine the effect of level of discretion in an oligopoly loan market on the incumbent lenders’ entry-deterrence pricing strategy. In my theoretical models, I find two critical propositions: first, with perfect information, the mark-up power of the interest rate in the primary market decreases as the level of discretion in price-setting increases. This effect is mitigated, however, by moral hazard. Second, with the existence of adverse selection, an increase in the level of discretion indicates that the incumbent lenders can have more room to set the pool-pricing interest rate in the primary market. Moreover, I provide empirical evidence for decreasing mark-up pricing in China’s loan market as loan rate liberalization completes, consistent with the prediction of my model.en_US
dc.language.isoenen_US
dc.subjectInterest rate liberalizationen_US
dc.subjectloan pricing strategyen_US
dc.subjectinformation advantageen_US
dc.subjectadverse selectionen_US
dc.subjectmoral hazarden_US
dc.titleLoan Pricing in Interest Rate Liberalization in Chinaen_US
dc.typeThesisen_US
dc.date.defence2020-08-26
dc.contributor.departmentDepartment of Economicsen_US
dc.contributor.degreeMaster of Artsen_US
dc.contributor.external-examinern/aen_US
dc.contributor.graduate-coordinatorCasey Warmanen_US
dc.contributor.thesis-readerKuan Xuen_US
dc.contributor.thesis-readerYulia Kotlyarovaen_US
dc.contributor.thesis-readerChristos Ntantamisen_US
dc.contributor.thesis-supervisorCasey Warmanen_US
dc.contributor.ethics-approvalNot Applicableen_US
dc.contributor.manuscriptsNot Applicableen_US
dc.contributor.copyright-releaseNot Applicableen_US
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