AN EMPIRICAL ANALYSIS OF PAYMENT CARD USAGE -super-*
AbstractI exploit a unique data set on the payment card industry to study issues associated with network effects and two-sided markets. I show that consumers concentrate their spending on a single payment network (single-homing), although many maintain unused cards that allow the ability to use multiple networks (multi-homing). Further, I establish a regional correlation between consumer usage and merchant acceptance within the four major networks (Visa, Mastercard, American Express and Discover). This correlation is suggestive of the existence of a positive feedback loop between consumer usage and merchant acceptance. Copyright 2007 Blackwell Publishing Ltd..
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal The Journal of Industrial Economics.
Volume (Year): 55 (2007)
Issue (Month): 1 (03)
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- Hyytinen Ari & Takalo Tuomas, 2009.
"Consumer Awareness and the Use of Payment Media: Evidence from Young Finnish Consumers,"
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- Nicholas Economides & David Henriques, 2011.
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- Wilko Bolt & Sujit Chakravorti, 2010. "Digitization of Retail Payment," DNB Working Papers 270, Netherlands Central Bank, Research Department.
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