A Welfare Ranking of Two-Sided Market Regimes

Arbeitspapier

Two-sided network effects in card payment systems are analysed under different market structures, e.g., competition, one-sided monopoly, bilateral monopoly and duopoly; with and without an interchange fee; for the so-called Baxter’s case of non-strategic merchants. A partial ranking of market structures according to their welfare effects is provided. Some support is found for the policy adopted by the EU Commission in the competition law case concerning Visa’s interchange fees.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Sveriges Riksbank Working Paper Series ; No. 185

Classification and Topics

• Classification: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Antitrust Policy and Public Enterprises, Nonprofit Institutions, and Professional Organizations
• Subject: Two-sided markets ; card payments ; payment systems ; acquiring ; issuing ; market structure

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bergman, Mats A.
• Event: Veröffentlichung
• (who): Sveriges Riksbank
• (where): Stockholm
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/82487
• Last update: 10.03.2025, 11:41 AM CET