Arbeitspapier
The mixed oligopoly of cross-border payment systems
This paper presents a model depicting cross-border payment systems as a mixed oligopoly.A private net settlement system that maximises profit competes with the central banks' gross settlement system that maximises welfare.It may be optimal for the central bank system to encourage increased use of the private system by charging fees that exceed the marginal cost.The central bank system is not only a competitor but also an essential service provider, because central bank money is needed for net settlement of payments in the private system.In some cases the central bank system can paradoxically induce the private system to charge lower fees by making it expensive to use central bank money for settlement purposes.
- ISBN
-
952-462-212-2
- Language
-
Englisch
- Bibliographic citation
-
Series: Bank of Finland Research Discussion Papers ; No. 11/2005
- Classification
-
Wirtschaft
Oligopoly and Other Imperfect Markets
Antitrust Policy and Public Enterprises, Nonprofit Institutions, and Professional Organizations
Financial Aspects of Economic Integration
Financial Institutions and Services: Other
- Subject
-
payment systems
network economics
mixed oligopolies
- Event
-
Geistige Schöpfung
- (who)
-
Kauko, Karlo
- Event
-
Veröffentlichung
- (who)
-
Bank of Finland
- (where)
-
Helsinki
- (when)
-
2005
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kauko, Karlo
- Bank of Finland
Time of origin
- 2005
Other Objects (12)
Cross-border performance in European banking
Links between securities settlement systems: An oligopoly theoretic approach
Cross-border loan portfolio diversification, capital requirements, and the European Banking Union
Technological transformation and nonbank competition in a model of retail banking oligopoly
Simulation analyses and stress testing of payment networks
Competition and regulation in European retail payment systems
Re-engineering payment systems for the E-world
The microeconomics of innovation: Oligopoly theoretic analyses with applications to banking and patenting
Assessing effects of price regulation in retail payment systems
Integrating European retail payment systems: some economics of SEPA
Less cash on the counter: forecasting Finnish payment preferences
Systemic risk in the Finnish payment system: An empirical investigation
Cross-border performance in European banking
Links between securities settlement systems: An oligopoly theoretic approach
Cross-border loan portfolio diversification, capital requirements, and the European Banking Union
Technological transformation and nonbank competition in a model of retail banking oligopoly
Simulation analyses and stress testing of payment networks
Competition and regulation in European retail payment systems
Re-engineering payment systems for the E-world
The microeconomics of innovation: Oligopoly theoretic analyses with applications to banking and patenting
Assessing effects of price regulation in retail payment systems
Integrating European retail payment systems: some economics of SEPA
Less cash on the counter: forecasting Finnish payment preferences
Systemic risk in the Finnish payment system: An empirical investigation
Cross-border performance in European banking
Links between securities settlement systems: An oligopoly theoretic approach
Cross-border loan portfolio diversification, capital requirements, and the European Banking Union
Technological transformation and nonbank competition in a model of retail banking oligopoly
Simulation analyses and stress testing of payment networks
Competition and regulation in European retail payment systems
Re-engineering payment systems for the E-world
The microeconomics of innovation: Oligopoly theoretic analyses with applications to banking and patenting
Assessing effects of price regulation in retail payment systems
Integrating European retail payment systems: some economics of SEPA
Less cash on the counter: forecasting Finnish payment preferences