The market for electronic cash cards

Oz Shy and Juha Tarkka

No 21/1998, Bank of Finland Research Discussion Papers from Bank of Finland

Abstract: We develop a theoretical framework aimed to model the pricing of electronic money (electronic cash cards) and the market domain in which it will be used.We first calculate the fee structures of electronic cash- and charge-card industries for the monopoly and competitive cases.We show that the different market structures do not affect the domain of electronic cash cards and the displacement of currency in daily transactions.We provide a welfare analysis to determine whether a market equilibrium generates an underutilization or overutilization of the electronic cash cards relative to currency.Finally, we evaluate the threshold investment costs, both general and POS-specific, which would prevent the emergence of this industry.

Keywords: Electronic Money; Smart Cards; Displacement of currency (search for similar items in EconPapers)
Date: 1998
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/211821/1/bof-rdp1998-021.pdf (application/pdf)

Related works:
Journal Article: The Market for Electronic Cash Cards (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:bofrdp:rdp1998_021

Access Statistics for this paper

More papers in Bank of Finland Research Discussion Papers from Bank of Finland Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().