With regard to the foreign branches of domestic banks, the fact that smaller institutions prefer to establish themselves where a larger domestic bank already has a foothold. This is explained by the fact that the costs of information search with regard to the nature of a location are reduced in this way. – In connection with inflation measurement, the fact that similar goods – both goods and services – can be purchased in comparison with outer districts in the city centers – partly more expensive, and this because of the regularly higher store rents (because of top rents in the city centers), – partly cheaper as a result of the better market transparency by the buyers and the competitive pressure triggered by this (because of the improved market transparency and the such triggered greater competitive pressure). This raises special recording and calculation problems (outlet substitution bias) for the calculation of the cost-of-living price index. – See alliances, cross-border, alignment, informal, internationalization, market entry costs, name identity. – Cf. Deutsche Bundesbank Monthly Report, January 2005, p. 40.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
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https://www.gerhardmerk.de/

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