Please use this identifier to cite or link to this item:
|Title:||Why do merchants accept payment cards?||Authors:||Wright, J.||Keywords:||credit cards
|Issue Date:||29-Aug-2010||Citation:||Wright, J. (2010-08-29). Why do merchants accept payment cards?. Review of Network Economics 9 (3) : -. ScholarBank@NUS Repository. https://doi.org/10.2202/1446-9022.1221||Abstract:||This short article explains why merchants accept expensive payment cards when merchants are Cournot competitors. The same acceptance rule as the Hotelling price competition model of Rochet and Tirole (2002) is derived. Unlike the models used in the existing literature, in the Cournot setting without free entry of merchants, payment card acceptance expands merchant output and increases merchant profit in equilibrium. With free entry, payment card acceptance increases the number of merchants in the industry and industry output. © 2010 Berkeley Electronic Press. All rights reserved.||Source Title:||Review of Network Economics||URI:||http://scholarbank.nus.edu.sg/handle/10635/124299||ISSN:||14469022||DOI:||10.2202/1446-9022.1221|
|Appears in Collections:||Staff Publications|
Show full item record
Files in This Item:
There are no files associated with this item.
checked on Jun 25, 2019
WEB OF SCIENCETM
checked on Jun 17, 2019
checked on May 25, 2019
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.