A general test of competitive conditions in the UK building society mortgage market: 1990-1996

John K. Ashton*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


The Rosse-Panzar statistic is used to test for market conduct and contestability within the UK building society mortgage market between 1990 and 1996. The statistic considers the distinction between monopolistic competition and profit maximising monopoly. Following Panzar and Rosse [1987], analysis of monopolistic competition can be seen to be concerned with both an individual and a group equilibrium. The comparative static approach of the Rosse-Panzar statistic is employed to test for this situation. Evidence of long-run competitive equilibrium is rejected. Presence of a contestable market with monopolistic competition is not rejected.

Original languageEnglish
Pages (from-to)86-94
Number of pages9
JournalService industries journal
Issue number1
Publication statusPublished - Jan 2000

Cite this