Network effects at retail payments market: evidence from Russian individuals

Egor Krivosheya () and Ekaterina Semerikova ()
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Egor Krivosheya: Moscow school of management SKOLKOVO, National Research University Higher School of Economics, Russian Federation
Ekaterina Semerikova: Moscow school of management SKOLKOVO

No 6910185, Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences

Abstract: This research empirically evaluates the effect of network externalities for individuals behavior at Russian retail payments market. Specifically, the effects of direct and indirect network externalities for cardholding and usage probabilities are examined. Using the representative sample of 1500 individuals from all Russian regions this study finds significant robust evidence of positive association between the degree of both types of network externalities and individuals? activity at the Russian retail payments market. Results are economically significant: a standard deviation increase in network effects leads to 2.5-4 percentage points increase in probability of cardholding and usage. Findings imply that one needs to account for network effects which play an important role for the payment behavior before implementing payment stimulating programs in Russia aimed at cardholders or users.

Keywords: Retail payments; payment cards; network effects; cardholders' behavior; financial services (search for similar items in EconPapers)
JEL-codes: D53 E42 G21 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2018-10
New Economics Papers: this item is included in nep-cis, nep-mac, nep-pay and nep-tra
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Citations: View citations in EconPapers (1)

Published in Proceedings of the Proceedings of the 10th Economics & Finance Conference, Rome, Oct 2018, pages 254-287

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iefpro:6910185

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