An Economic Analysis of the Determination of Interchange Fees in Payment Card Systems

The paper investigates, in a non-technical fashion, the economic determinants of interchange fees in payment card systems and the potential need for their regulation. Among other things, it demonstrates that the proposal for a cost-based regulation of interchange fees relies on an erroneous, vertically organized, model of the payment card industry.

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Year of publication:	2003
Authors:	Rochet, Jean-Charles ; Tirole, Jean
Published in:	Review of Network Economics. - Vol. 2.2003, 2, p. 69-79
Subject:	Payment systems \| credit cards \| interchange fees \| regulation \| banks

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005685444