Download or read book An Introduction to the Economics of Payment Card Networks written by Robert M. Hunt and published by . This book was released on 2003 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Market Definition and Market Power in Payment Card Networks written by Eric Emch and published by . This book was released on 2006 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Economics of Payment Cards written by Wilko Bolt and published by . This book was released on 2011 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article surveys the recent theoretical literature on payment cards (focusing on debit and credit cards) and studies this research's possible implications for the current public policy debate over payment card networks and the pricing of their services for both consumers and merchants.
Download or read book Interchange Fees and Payment Card Networks written by and published by . This book was released on 2009 with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book How and Why Do Consumers Choose Their Payment Methods written by Stacey L. Schreft and published by DIANE Publishing. This book was released on 2010-11 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: The set of payment options has expanded over time. Today, consumers¿ wallets often hold currency, checks, multiple credit cards, debit cards, and perhaps even stored value cards. This report provides an overview of the literature on consumer payment behavior. It considers the state of our understanding of how and why consumers choose their payment methods and what is needed to make more headway in understanding consumer payment decisions. It closes by discussing the policy issues that require that we make progress with payments research.
Download or read book Two Sided Market R D and Payments System Evolution written by Bin Grace Li and published by International Monetary Fund. This book was released on 2019-03-18 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: It takes many years for more efficient electronic payments to be widely used, and the fees that merchants (consumers) pay for using those services are increasing (decreasing) over time. We address these puzzles by studying payments system evolution with a dynamic model in a twosided market setting. We calibrate the model to the U.S. payment card data, and conduct welfare and policy analysis. Our analysis shows that the market power of electronic payment networks plays important roles in explaining the slow adoption and asymmetric price changes, and the welfare impact of regulations may vary significantly through the endogenous R&D channel.
Download or read book The Economics of the Payment Card Industry written by David Sparks Evans and published by . This book was released on 1993 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Finance and Economics Discussion Series written by Robin a Prager and published by Scholar's Choice. This book was released on 2015-02-16 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt: This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact, and remains as true to the original work as possible. Therefore, you will see the original copyright references, library stamps (as most of these works have been housed in our most important libraries around the world), and other notations in the work. This work is in the public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work.As a reproduction of a historical artifact, this work may contain missing or blurred pages, poor pictures, errant marks, etc. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.
Download or read book The Economics of Payment Card Fee Structure written by Fumiko Hayashi and published by . This book was released on 2013 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper considers possible public policies that could improve efficiency and welfare distribution in the U.S. retail payments industry. Mainly, four options, i) encouraging competition; ii) allowing merchants to surcharge; iii) regulating merchant fees; and iv) regulating payment card rewards, are discussed, but each option has advantages and disadvantages. Any single option may not achieve the policymakers' objective; rather, combining several policy options may be required.
Download or read book Paying with Plastic second edition written by David S. Evans and published by MIT Press. This book was released on 2004-12-17 with total page 388 pages. Available in PDF, EPUB and Kindle. Book excerpt: The definitive account of the trillion-dollar payment card industry. The payment card business has evolved from its inception in the 1950s as a way to handle payment for expense-account lunches (the Diners Club card) into today's complex, sprawling industry that drives trillions of dollars in transaction volume each year. Paying with Plastic is the definitive source on an industry that has revolutionized the way we borrow and spend. More than a history book, Paying with Plastic delivers an entertaining discussion of the impact of an industry that epitomizes the notion of two-sided markets: those in which two or more customer groups receive value only if all sides are actively engaged. New to this second edition, the two-sided market discussion provides useful insight into the implications of these market dynamics for cardholder rewards, merchant interchange fees, and card acceptance. The authors, both of whom have researched the industry for more than 25 years, also examine the implications of the recent antitrust cases on the industry as well as other business and technological changes—including the massive consolidation brought about by bank mergers, the rise of the debit card, and the emergence of e-commerce—that could alter the payment card industry dramatically in the years to come.
Download or read book Interchange Fee Economics written by Jakub Górka and published by Springer. This book was released on 2018-11-29 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt: Interchange fees have been the focal point for debate in the card industry, among competition authorities and policy makers, as well as in the economic literature on two-sided markets and on the regulation of market failures. This book offers insight into the economics of interchange fees. First, it explains the nature of two-sided markets/platforms/networks and elaborates on four-party schemes and on the rationale behind interchange fees according to Baxter’s model and its later refinements. It also includes the debate about the optimum level of interchange fees and its determination (“tourist test”), and presents the original framework for assessing the impact of interchange fee regulatory reductions for the market participants: consumers, merchants, acquirers, issuers, and card organisations. The framework addresses three areas of concern in reference to the transmission channels of interchange fee reductions (pass-through) and the card scheme domain (triangle: payment organisation, issuer, acquirer). The book discusses the effects of regulatory interchange fee reductions in Australia, USA, Spain, and, most specifically, Poland. It will be of interest to policy makers, card and payments industry practitioners, academics, and students.
Download or read book Paying with Plastic second edition written by David S. Evans and published by MIT Press. This book was released on 2004-12-17 with total page 385 pages. Available in PDF, EPUB and Kindle. Book excerpt: The definitive account of the trillion-dollar payment card industry. The payment card business has evolved from its inception in the 1950s as a way to handle payment for expense-account lunches (the Diners Club card) into today's complex, sprawling industry that drives trillions of dollars in transaction volume each year. Paying with Plastic is the definitive source on an industry that has revolutionized the way we borrow and spend. More than a history book, Paying with Plastic delivers an entertaining discussion of the impact of an industry that epitomizes the notion of two-sided markets: those in which two or more customer groups receive value only if all sides are actively engaged. New to this second edition, the two-sided market discussion provides useful insight into the implications of these market dynamics for cardholder rewards, merchant interchange fees, and card acceptance. The authors, both of whom have researched the industry for more than 25 years, also examine the implications of the recent antitrust cases on the industry as well as other business and technological changes—including the massive consolidation brought about by bank mergers, the rise of the debit card, and the emergence of e-commerce—that could alter the payment card industry dramatically in the years to come.
Download or read book Electronic Value Exchange written by David L. Stearns and published by Springer Science & Business Media. This book was released on 2011-01-04 with total page 261 pages. Available in PDF, EPUB and Kindle. Book excerpt: Electronic Value Exchange examines in detail the transformation of the VISA electronic payment system from a collection of non-integrated, localized, paper-based bank credit card programs into the cooperative, global, electronic value exchange network it is today. Topics and features: provides a history of the VISA system from the mid-1960s to the early 1980s; presents a historical narrative based on research gathered from personal documents and interviews with key actors; investigates, for the first time, both the technological and social infrastructures necessary for the VISA system to operate; supplies a detailed case study, highlighting the mutual shaping of technology and social relations, and the influence that earlier information processing practices have on the way firms adopt computers and telecommunications; examines how “gateways” in transactional networks can reinforce or undermine established social boundaries, and reviews the establishment of trust in new payment devices.
Download or read book Economic Analysis of the Digital Economy written by Avi Goldfarb and published by University of Chicago Press. This book was released on 2015-05-08 with total page 510 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is a small and growing literature that explores the impact of digitization in a variety of contexts, but its economic consequences, surprisingly, remain poorly understood. This volume aims to set the agenda for research in the economics of digitization, with each chapter identifying a promising area of research. "Economics of Digitization "identifies urgent topics with research already underway that warrant further exploration from economists. In addition to the growing importance of digitization itself, digital technologies have some features that suggest that many well-studied economic models may not apply and, indeed, so many aspects of the digital economy throw normal economics in a loop. "Economics of Digitization" will be one of the first to focus on the economic implications of digitization and to bring together leading scholars in the economics of digitization to explore emerging research.
Download or read book Information Rules written by Carl Shapiro and published by Harvard Business Press. This book was released on 1999 with total page 374 pages. Available in PDF, EPUB and Kindle. Book excerpt: As one of the first books to distill the economics of information and networks into practical business strategies, this is a guide to the winning moves that can help business leaders--from writers, lawyers and finance professional to executives in the entertainment, publishing and hardware and software industries-- navigate successfully through the information economy.
Download or read book The Economics of Bank Credit Cards written by Thomas Russell and published by Greenwood. This book was released on 1975 with total page 166 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on the Economics of Payment Card Industry written by Chi-Hui Yen and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation consists of three chapters that address important questions in the payment card industry. Chapter 1 provides an overview of the institutional background, and introduces the problem of regressive distributional effects generated from credit card pricing. The regressive distributional effects arise when merchants pass on their costs associated with credit cards to all consumers by raising the retail prices. Since merchants typically do not differentiate prices across payment methods, these additional costs are cross-subsidized by cash and debit users. This induces a regressive transfer from low-income to high-income consumers because credit card usages tend to increase with income. Chapter 1 contributes to the literature by developing a measurement to quantify the regressive transfers made by the consumers to the merchants in a micro level. Using a unique shopping diary data conducted by Bank of Canada in 2013, I show that non-credit card users on average made a regressive transfer that is more than twice of that made by credit card users per transaction. The ratio of regressive transfers to transaction amount also decreases monotonically with income. These results suggest that how consumers choose between payment methods to make transactions have important implications on the distribution of regressive transfers, which motivates a structural estimation on consumer's payment method choices. Chapter 2 constructs a structural model of consumer adoption and usage choices, and uses the parameter estimates to simulate the counterfactual outcomes on the distributions of regressive transfers under various institutional changes. The model is built upon Huynh et al. (2021), which features a two-stage process where consumers first choose which payment bundle to adopt, then choose which payment method to use upon transaction. Heterogeneous preferences across consumer groups are estimated using a discrete-type of consumer demand model. Unlike most of the literature which ignores consumers’ choices between the issuer banks, the model considers consumers’ issuer bank choices among credit cards. Simulation results suggest that the model fits the observed data well, and generate reasonable demand elasticities of consumer usage and adoption probabilities. I conduct three policy experiments using the model estimates: a hypothetical removal of cash, a monopoly setting, and a perfect competition setting in the issuer banks. The results show that the regressive distributional effects are reduced under all three scenarios. Particularly, the monopoly setting has the strongest effects in the redistribution of regressive transfers, where it reduces the per-transaction and per-transaction value regressive transfers made by non-credit card users and low-income consumers, while increases those made by credit card users and high-income consumers. On the other hand, welfare comparisons show that perfect competition renders the highest increase in consumer surplus, while the monopoly setting and removal of cash on average hurt the consumers in terms of consumer surplus. This is the first paper to my knowledge that studies the regressive distributional effects with a structural demand model, and contributes to the literature by investigating the potential outcomes from changes in the market structure of the payment card industry. Chapter 3 builds upon the previous chapters and introduces dynamics into consumer's payment method choices. In particular, I ask how consumer awareness on merchant acceptance affects consumer's adoption and usage choices, and how information diffusion drives the adoption and usage curve over time. I extend the model developed in Chapter 2 by considering consumer awareness that varies between payment methods. Using the parameter estimates, I conduct policy experiments where I introduce a hypothetical new payment instrument in the market, assuming different consumer inform probabilities for existing instruments and the new instrument. Simulation results on post-introduction adoption and usage probabilities show that there is a large impact of consumer awareness on consumers' adoption decisions, with a bigger impact when assuming different inform probabilities for the new instrument. To understand how consumers' adoption and usage decisions change over time when consumer awareness evolves, I borrow the literature of diffusion and simulate a diffusion process of consumer awareness using the Bass Diffusion model (Bass (1969)). The simulation results show that the adoption and usage of new payment instrument exhibits an S-shaped curve after its introduction in the market, where it takes over six years to reach the convergence. Welfare analyses show that consumer surplus initially drops after the introduction, due to the lack of information, and gradually increases when consumers become more informed. This suggests that there is an impactful welfare loss associated with information failure, and it is important for the policy makers to develop measurement that ensures a quick diffusion of information when introducing a new payment method.
