Banking Competition and Market Efficiency
分析金融中介在减少重复监督成本时的竞争，发现一般均衡结果通常无效率，中介可能增加交易成本，脱媒也可能成为均衡。
This paper analyses competition among financial intermediaries in a set-up where financial intermediaries economize on duplicated monitoring (Diamond (1984)). We analyse two different games in which both direct trade and indirect trade are available. We show that in general equilibrium outcomes are inefficient, so that Diamond's efficiency result is fragile. Intermediation may increase rather than decrease transaction costs. Disintermediation may also be an equilibrium. We discuss the role played by the nonconvexities of banks' technology and that played by competition for deposits and loans.