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This document analyzes the competition and market power of banks in non-metropolitan areas, focusing on how geographic distance affects banking services and the exercise of market power. It introduces a structural model to estimate the supply and demand for banking services and provides empirical results that suggest significant spatial market power among non-metro banks in the upper Midwest.

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Spatial competition refers to the competitive dynamics between firms or entities that operate in varying geographical locations, influencing pricing, service delivery, and market share in a specific area.

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Typically, businesses or entities engaged in activities that affect market conditions in different geographical areas are required to file spatial competition and market reports.

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Information to be reported typically includes market share data, pricing, geographic service areas, competitive interactions, and any relevant economic impacts.

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