Network issues and payment systems
AbstractHighways, railroads, pipelines—we see or hear about these types of physical networks almost every day. But information systems, such as the Internet, and payment systems, such as ATMs and credit cards, also involve networks. Hence, understanding the economics of networks and the unique features of network-dependent industries is crucial to modern life. In this article, James McAndrews outlines some of the unique features of network-dependent industries. He also analyzes some related payment-system issues and demonstrates that determining appropriate public policy would be difficult without a knowledge of the economics of payment networks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Federal Reserve Bank of Philadelphia in its journal Business Review.
Volume (Year): (1997)
Issue (Month): Nov ()
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dennis W. Carlton & Alan S. Frankel, 1995. "Antitrust and payment technologies," Review, Federal Reserve Bank of St. Louis, issue Nov, pages 41-54.
- Economides, Nicholas, 1996.
"The economics of networks,"
International Journal of Industrial Organization,
Elsevier, vol. 14(6), pages 673-699, October.
- Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-40, June.
- Dybvig, Philip H. & Spatt, Chester S., 1983. "Adoption externalities as public goods," Journal of Public Economics, Elsevier, vol. 20(2), pages 231-247, March.
- Joseph Farrell & Garth Saloner, 1986.
"Installed Base and Compatibility, With Implications for Product Preannouncements,"
411, Massachusetts Institute of Technology (MIT), Department of Economics.
- Joseph Farrell & Garth Saloner, 1985. "Installed Base and Compatibility With Implications for Product Preannouncements," Working papers 385, Massachusetts Institute of Technology (MIT), Department of Economics.
- Kirstin E. Wells, 1996. "Are checks overused?," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Fall, pages 2-12.
- Neil Gandal & Michael Kende & Rafael Rob, 1997. "The Dynamics of Technological Adoption in Hardware/Software Systems," CARE Working Papers 9706, The University of Texas at Austin, Center for Applied Research in Economics.
- Ted Temzelides, 1997. "Are bank runs contagious?," Business Review, Federal Reserve Bank of Philadelphia, issue Nov, pages 3-14.
- Alessandra Guariglia & Yiing Jia Loke, 2004. "What determines the value and volume of noncash transactions? Evidence from a panel of European and North American countries," Applied Economics, Taylor & Francis Journals, vol. 36(4), pages 291-303.
- Bolt, Wilko & Humphrey, David, 2005. "Public good issues in TARGET: natural monopoly, scale economies, network effects and cost allocation," Working Paper Series 0505, European Central Bank.
- Loretta J. Mester, 2000. "The changing nature of the payments system: should new players mean new rules?," Business Review, Federal Reserve Bank of Philadelphia, issue Mar, pages 3-26.
- Kemppainen, Kari, 2008. "Integrating European retail payment systems: some economics of SEPA," Research Discussion Papers 22/2008, Bank of Finland.
- Kenneth N. Kuttner & James J. McAndrews, 2001. "Personal on-line payments," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 35-50.
- Robert Hunt, 2003. "Antitrust issues in payment card networks: can they do that? should we let them?," Business Review, Federal Reserve Bank of Philadelphia, issue Q2, pages 14-23.
- Kari Kemppainen, 2004. "Competition and regulation in European retail payment systems," Microeconomics 0404008, EconWPA.
- Jean-Charles Rochet, 2007. "Some economics of horizontal integration in the payments industry," Proceedings – Payments System Research Conferences, Federal Reserve Bank of Kansas City.
- Sujit Chakravorti & Alpa Shah, 2001.
"A Study of the Interrelated Bilateral Transactions in Credit Card Networks,"
Law and Economics
- Sujit Chakravorti & Alpa Shah, 2001. "A study of the interrelated bilateral transactions in credit card networks," Occasional Paper; Emerging Payments EPS-2001-2, Federal Reserve Bank of Chicago.
- Gilbert, Erika W. & Scott, William L., 2001. "The Financial Modernization Act: new perspectives for the finance curriculum," Financial Services Review, Elsevier, vol. 10(1-4), pages 197-208.
- Pippow Ingo & Schoder Detlef, 2002. "The Demand for Stored Value Payment Instruments," Microeconomics 0204002, EconWPA.
- Fumiko Hayashi & Elizabeth Klee, 2002.
"Technology adoption and consumer payments : evidence from survey data,"
Payments System Research Working Paper
PSR WP 02-01, Federal Reserve Bank of Kansas City.
- Hayashi Fumiko & Klee Elizabeth, 2003. "Technology Adoption and Consumer Payments: Evidence from Survey Data," Review of Network Economics, De Gruyter, vol. 2(2), pages 1-16, June.
- Stacey L. Schreft, 2002. "Clicking with dollars : how consumers can pay for purchases from E-tailers," Economic Review, Federal Reserve Bank of Kansas City, issue Q I, pages 37-64.
- Solomon, Elinor Harris, 1999. "What should regulators do about consolidation and electronic money?," Journal of Banking & Finance, Elsevier, vol. 23(2-4), pages 645-653, February.
- W. Bolt, 2003. "Retail Payments in the Netherlands: some Facts and Some Theory," WO Research Memoranda (discontinued) 722, Netherlands Central Bank, Research Department.
- Chakravorti Sujit, 2003.
"Theory of Credit Card Networks: A Survey of the Literature,"
Review of Network Economics,
De Gruyter, vol. 2(2), pages 1-19, June.
- Sujit Chakravorti, 2003. "Theory of credit card networks: a survey of the literature," Payment Cards Center Discussion Paper 03-09, Federal Reserve Bank of Philadelphia.
- Batiz-Lazo, Bernardo & Maixe-Altes, J. Carles, 2009. "Managing technological change by committee: Adoption of computers in Spanish and British savings banks (circa 1960-1988)," MPRA Paper 27086, University Library of Munich, Germany.
- Wilko Bolt & David B. Humphrey, 2005. "Public Good Aspects of TARGET: Natural Monopoly, Scale Economies, and Cost Allocation," DNB Working Papers 036, Netherlands Central Bank, Research Department.
- Michael C. Bonello & George M. von Furstenberg & Kari Kemppainen & Sinikka Salo, 2006. "The Adoption of the Euro, Choice of Currency Regime and Integration of Payment Systems," SUERF Studies, SUERF - The European Money and Finance Forum, number 2006/5 edited by Morten Balling.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Beth Paul).
If references are entirely missing, you can add them using this form.