Please use this identifier to cite or link to this item: http://scholarbank.nus.edu.sg/handle/10635/22463
Title: Credit card interchange fees
Authors: Rochet, J.-C.
Wright, J. 
Keywords: Credit cards
Payments
Two-sided markets
Issue Date: 2010
Citation: Rochet, J.-C., Wright, J. (2010). Credit card interchange fees. Journal of Banking and Finance 34 (8) : 1788-1797. ScholarBank@NUS Repository.
Abstract: We build a model of credit card pricing that explicitly takes into account credit functionality. In the model a monopoly card network always selects an interchange fee that exceeds the level that maximizes consumer surplus. If regulators only care about consumer surplus, a conservative regulatory approach is to cap interchange fees based on retailers' net avoided costs from not having to provide credit themselves. This always raises consumer surplus compared to the unregulated outcome, sometimes to the point of maximizing consumer surplus. © 2010 Elsevier B.V. All rights reserved.
Source Title: Journal of Banking and Finance
URI: http://scholarbank.nus.edu.sg/handle/10635/22463
ISSN: 03784266
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.

SCOPUSTM   
Citations

27
checked on Feb 27, 2018

WEB OF SCIENCETM
Citations

23
checked on Apr 30, 2018

Page view(s)

255
checked on Apr 21, 2018

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.