The necessary and sufficient condition for convergence is that the slope of the supply curve be greater than the absolute value of the slope of the demand curve. If the slope of the supple curve is less, then price and quantity diverge from equilibrium over time.
Deregulation Going into the 1980s, American banks faced heavy M&A, intrastate branching, and interstate banking restrictions. By the end of the 1980s, most states had lifted these M&A and branching restrictions… Consolidation Consequently, the number of mergers increased while the number of new entrants into the market declined. The cost of entering the market was … Continue reading Deregulation, Consolidation, and Collusion in American Banking