Network externalities: the catch-22 of retail payments innovations

An investigation of one of the reasons why electronic payments have not yet supplanted cash and checks in retail transactions: Consumers willingness to use an innovation depends on the number of merchants who have already adopted it, and merchants willingness to invest in the innovation depends on the number of consumers who are already using it.

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Year of publication:	1998
Authors:	Osterberg, William P. ; Thomson, James B.
Published in:	Economic Commentary. - Federal Reserve Bank of Cleveland. - 1998, Feb, 2
Publisher:	Federal Reserve Bank of Cleveland
Subject:	Payment systems \| Smart cards

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

Persistent link: https://www.econbiz.de/10005390514