Competition Among Dutch Pension Funds: Is there Any?
By Jacob Antoon Bikker & Jeroen Meringa
This paper adds to the literature by analysing for the first time the functioning of the Dutch pension funds market from a competition or efficiency perspective. Of course, competition is severely limited on this highly regulated market. The analyses focus on a key property of well-functioning markets: the reward of efficiency. The conclusion can be drawn that in the market for pension funds efficiency is indeed rewarded, up to a certain level. New regulations on cost transparency and on the quality of pension boards, and the ongoing consolidation among pension funds may be explanations for this development over time. At the same time, the level at which efficiency is rewarded is very low compared to other financial sectors such as the life insurance and banking sector.
Source SSRN
