Interconnection and Rivalry between Banks
This is an incomplete draft of a paper that will examine the competitive tension that arises when banks which compete for deposits provide "interconnecting" payment services to each other's depositors. This draft presents a basic theoretical model and discusses some of the analysis that can be carried out and issues that can be addressed with the model.
|Date of creation:||Aug 1999|
|Date of revision:|
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- James McAndrews, 1998.
"Direct presentment regulation in payments,"
584, Federal Reserve Bank of Chicago.
- Nicholas Economides & Giuseppe Lopomo & Glenn Woroch, 1997.
"Strategic Commitments and the Principle of Reciprocity in Interconnection Pricing,"
- Nicholas Economides & Giuseppe Lopomo & Glenn Woroch, 2005. "Strategic Commitments and the Principle of Reciprocity in Interconnection Pricing," Working Papers 05-10, New York University, Leonard N. Stern School of Business, Department of Economics.
- James McAndrews & William Roberds, 1999.
"Payment intermediation and the origins of banking,"
99-11, Federal Reserve Bank of Atlanta.
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