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The Market for Electronic Cash Cards

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  • Shy, Oz
  • Tarkka, Juha
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Abstract

We develop a theoretical framework aimed to model the pricing of electronic cash cards and the market domain in which these cards will be used in an environment where charge cards and currency (the legal tender) are competing payment media. We also investigate whether the adoption of the various payment media generates an underutilization or overutilization of the electronic cash cards relative to currency.

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Bibliographic Info

Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.

Volume (Year): 34 (2002)
Issue (Month): 2 (May)
Pages: 299-314

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Handle: RePEc:mcb:jmoncb:v:34:y:2002:i:2:p:299-314

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879

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  1. Leinonen, Harry, 1998. "Interbank funds transfer systems: liquidity needs, counterparty risks and collateral," Research Discussion Papers 16/1998, Bank of Finland.
  2. Pirttilä, Jukka, 1998. "Earmarking of Environmental Taxes: Efficient, After All," Research Discussion Papers 4/1998, Bank of Finland.
  3. Willman, Alpo & Kortelainen, Mika & Männistö, Hanna-Leena & Tujula, Mika, 1998. "The BOF5 Macroeconomic Model of Finland, Structure and Equations," Research Discussion Papers 10/1998, Bank of Finland.
  4. Santomero, Anthony M & Seater, John J, 1996. "Alternative Monies and the Demand for Media of Exchange," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(4), pages 942-60, November.
  5. Kane, Edward J, 1996. "Comment on Alternative Monies and the Demand for Media of Exchange," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(4), pages 961-64, November.
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