Product Differentiation And Consumption Efficiency In Mortgage Markets

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Abstract

This study evaluates the outcome of non-price competition in the UK mortgage market. Developing a novel application of data envelopment analysis, DEA, within the banking literature, this study finds evidence of high consumption efficiency. Employing cluster analysis, the study provides additional evidence that efficient mortgages are available for borrowers across a broad range of market segments. The study also shows that these beneficial aspects of non-price competition are only available to borrowers who select mortgages based on rational measures of price. The discussion closes with guidance for policymakers.
Original languageEnglish
Pages (from-to)805-809
JournalJournal of Business Research
DOIs
Publication statusPublished - Sept 2009

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