Two-sided market, R&D, and payments system evolution
| Autor: | Zhu Wang, Bin Grace Li, James McAndrews |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Economics and Econometrics
media_common.quotation_subject Monetary economics Two-sided market Microeconomics Personal income Economic inequality Income distribution 0502 economics and business Economics Market power 050207 economics Fixed cost General Environmental Science 050205 econometrics media_common 05 social sciences TheoryofComputation_GENERAL D channel Payment Policy analysis Payment card General Earth and Planetary Sciences ComputingMilieux_COMPUTERSANDSOCIETY Welfare Finance |
| Zdroj: | Journal of Monetary Economics. 115:180-199 |
| ISSN: | 0304-3932 |
| DOI: | 10.1016/j.jmoneco.2019.06.005 |
| Popis: | 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 two-sided market setting. We calibrate the model to 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. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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