Using contract‐level data for the Canadian mortgage market, this paper provides evidence of an “invest‐and‐harvest” pricing pattern. We build a dynamic model of price negotiation with search and switching frictions to capture key market features. We estimate the model and use it to investigate the effects of market frictions and the resulting dynamic competition on borrowers' and banks' payoffs. We show that dynamic pricing and the presence of search and switching costs have important implications for public policies.

中文翻译：

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议价市场的动态竞争


使用加拿大抵押贷款市场的合同级数据，本文提供了“投资和收获”定价模式的证据。我们构建了一个动态的价格谈判模型，其中包含搜索和切换摩擦，以捕获关键的市场特征。我们估计该模型并使用它来研究市场摩擦以及由此产生的动态竞争对借款人和银行收益的影响。我们表明，动态定价以及搜索和转换成本的存在对公共政策具有重要影响。