Die Großen Zwei - Wettbewerb im Kreditkartenmarkt?
AbstractThis article analyzes the market for credit cards. I begin with a discussion of the organization and the characteristics of the market. Next I present the antitrust cases in the USA and the European Union. Contributions to the literature on credit cards in respect to the market characteristics and the antitrust cases are discussed. Finally I compare prices of credit card use with close substitutes (debit cards). I analyze whether costs influence prices of the service. My empirical evidence suggests that prices are not determined by costs and thus inefficiencies must exist given the current market structure.Evidence on special agreements supports the hypothesis that market power is an important factor for price determination.
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Bibliographic InfoPaper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number 0201.
Date of creation: Jan 2002
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Web page: http://www.univie.ac.at/vwl
Other versions of this item:
- Uwe Dulleck & Hans W. Friederiszick, 2004. "Die Großen Zwei - Wettbewerb im Kreditkartenmarkt?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 224(4), pages 445-470, July.
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-01-22 (All new papers)
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- Hausman, Jerry A & Leonard, Gregory K & Tirole, Jean, 2003.
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- Jerry A. Hausman & Gregory K. Leonard & Jean Tirole, 2003. "On Non-Exclusive Membership in Competing Joint Ventures," Levine's Working Paper Archive 506439000000000145, David K. Levine.
- Richard Schmalensee, 2001.
"Payment Systems and Interchange Fees,"
NBER Working Papers
8256, National Bureau of Economic Research, Inc.
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