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Establishing compatibility between Europe's payment systems

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  • Leibbrandt, Gottfried

Abstract

A model is introduced to analyze the effect of transaction patterns on the decision by two banks in different countries to make their payment networks compatible. Domestically oriented transaction patterns are found to significantly reduce the attractiveness to banks of establishing compatibility. The model is applied to the case of harmonizing Europe's credit transfer networks.

Suggested Citation

  • Leibbrandt, Gottfried, 2010. "Establishing compatibility between Europe's payment systems," International Journal of Industrial Organization, Elsevier, vol. 28(1), pages 69-73, January.
    • Handle: RePEc:eee:indorg:v:28:y:2010:i:1:p:69-73
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    Cited by:

    1. Bita Shabgard, 2021. "Single euro payment area (SEPA) and banking industry: discriminatory pricing vs. non-discriminatory pricing," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(3), pages 355-383, September.
    2. Marco Magnani & Fabio M. Manenti & Paola Valbonesi, 2022. "Measuring Switching Costs in the Italian Residential Electricity Market," "Marco Fanno" Working Papers 0258, Dipartimento di Scienze Economiche "Marco Fanno".

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