A Note on Partial Merchant Internalization and MIT Threshold

In framework of Rochet and Tirole (2011), I allow for partial merchant internalization and study how MIT threshold is related to levels of inter-change fee that maximize various components of social welfare. I find that cost absorption on the side of issuers and merchant heterogeneity each bias MIT threshold upward from TUS maximizing level.

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Year of publication:	2015
Authors:	Lipatov, Vilen
Publisher:	Munich : Center for Economic Studies and ifo Institute (CESifo)
Subject:	MIT \| merchant internalization \| payment cards \| two-sided markets

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Series:	CESifo Working Paper ; 5684
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	845559168 [GVK] hdl:10419/128385 [Handle] RePec:ces:ceswps:_5684 [RePEc]
Classification:	E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System ; G28 - Government Policy and Regulation ; K21 - Antitrust Law ; L49 - Antitrust Policy. Other
Source:	EconStor

Persistent link: https://ebvufind01.dmz1.zbw.eu/10011431220