Pandej ChintrakarnPaan JindaponMahidol UniversityBangkok University2018-06-112018-06-112012-01-01European Journal of Scientific Research. Vol.69, No.2 (2012), 218-2231450202X1450216X2-s2.0-84856184111https://repository.li.mahidol.ac.th/handle/20.500.14594/13525This paper examines market power in mortgage lending market in the U.S., applying a dynamic reformulation of the Bresnahan-Lau model in an error correcting framework. The most common motivation for using this model is to solve the inference problem when using non-stationary data, and to incorporate dynamic factors such as habit formation from the demand side and adjustment costs for the producer. The results suggest that commercial banks exercise market power in mortgage loan market in the long run. The estimated markup of 82% is statistically significant at the 1% level. © 2012 EuroJournals Publishing, Inc.Mahidol UniversityAgricultural and Biological SciencesComputer ScienceEarth and Planetary SciencesEngineeringMaterials ScienceMathematicsArticleSCOPUS