Creti, Anna; Verdier, Marianne - Université Paris-Dauphine (Paris IX) - 2014
In this paper, we discuss how fraud losses impact the price structure chosen by a monopolistic payment platform, if … merchants can invest in fraud detection technologies. We show that liability rules bias the structure of the prices charged by …. If consumers are liable for fraud, the profit-maximizing price structure is neither biased in favor of consumers nor …