Since the ECB has lowered the interest rate on deposits into negative territory, more and more commercial banks are also passing on this negative interest rate to their customers. The main aim of this paper is to answer the question under which conditions the commercial banking sector will be more or less reluctant to pass the negative deposit rate on to its private customers. We first clarify the circumstances under which demand deposits and excess liquidity arise, and what role quantitative easing plays in this context. Within a game-theoretical framework, it is derived that the pressure to pass on the negative interest rate is particularly high if there are no switching costs, and the banking market follows a Bertrand competition.
ist Professor für Volkswirtschaftslehre an der FH Erfurt. Bevorzugte Forschungsgebiete: Industrieökonomik, Geldtheorie und Geldpolitik, Monetäre Außenwirtschaft. Dipl.-Vw. Nadja Henze ist Lehrkraft für besondere Aufgaben an der FH Erfurt. Ihre Arbeitsschwerpunkte liegen in der Mikroökonomik sowie den quantitativen Methoden der Wirtschaftswissenschaften.
A game-theoretic setting is used to illuminate the conflict between vaccination proponents and vaccination opponents. A central result is that vaccination proponents could in principle persuade vaccination opponents to vaccinate by means of subsidization. Such a subsidy could increase benefits for both groups. Deeper analysis provides numerous further insights regarding the stability of these results.
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