Money in the real and the virtual world: e‐money, c‐money and the demand for cb‐money
Electronic money seems to become a new form of means of payment, not only for the Internet. It therefore will compete with other means of payment as central bank money and credit cards. There is an extensive literature on the technical and security aspects of the several forms of electronic money, but only a few papers on the economic aspects exist. In this paper, a Lancaster approach to the demand for means of payment is employed to scrutinize closer the relationship between electronic money and central bank money and credit cards. It is shown that in a two characteristics world of liquidity (acceptability) and security, there is a place for electronic money. Furthermore, it is shown that at present none of the existing monies has the potential for being a dominant means of payment. However, if the network externality problem of electronic money can be solved, electronic money may supplant the others. Copyright Kluwer Academic Publishers 1999
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:kap:netnom:v:1:y:1999:i:1:p:11-35. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.