Oligopoly Model of a Debit Card Network

Peter Manchev

MPRA Paper from University Library of Munich, Germany

Abstract: The paper builds an oligopoly model of a debit card network. It examines the competition between debit card issuers. We show that there is an optimal pricing for the debit card network, which maximizes all issuer's revenues. The paper also shows that establishing a link between debit card networks averages the costs provided that there is no growth in the customer's usage of the networks, resulting from the link.

Keywords: debit card; payment networks; switch fees; access pricing (search for similar items in EconPapers)
JEL-codes: G21 L13 (search for similar items in EconPapers)
Date: 2006-07-28, Revised 2007-02-26
New Economics Papers: this item is included in nep-com, nep-ind, nep-mic and nep-net
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:2460

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