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It takes many years for more efficient electronic payments to be widely used, and the fees that merchants (consumers) pay for using those services are increasing (decreasing) over time. We address these puzzles by studying payments system evolution with a dynamic model in a twosided market...
Persistent link: https://www.econbiz.de/10012009590
Using a simple model of two-sided markets, we show that, in the social optimum, platform pricing leads to an inherent cost recovery problem. This result is driven by the positive externality of participation that users on either side of the market exert on the opposite side. The contribution of...
Persistent link: https://www.econbiz.de/10014404197
first extend existing theory to characterize the roles of imperfect competition and product differentiation, then …
Persistent link: https://www.econbiz.de/10012518847
Does greater product market competition improve external competitiveness and growth? This paper examines this question … emerging market economies and developing countries, and finds that an improvement in domestic competition is associated with a … productivity growth. Price levels, including of essential items, are also generally lowered with an increase in competition …
Persistent link: https://www.econbiz.de/10012177592
We examine trends in bank competition since the early 2000s. The Lerner index-arguably the most commonly used measure … frequently used indicators of banking sector competition seem much more muted. We show that the significant drop in policy rates …
Persistent link: https://www.econbiz.de/10012612344
Dollarization in Russia increased rapidly during the early 1990s, but failed to come down in the second half of the 1990s in spite of exchange rate stabilization. To explain this ""dollarization hysteresis,"" this paper develops a model in which network externalities in the demand for currency...
Persistent link: https://www.econbiz.de/10014403658
This paper shows that the presence of quotas on imported inputs that are based on installed capacity can lead to capacity underutilization in manufacturing industries of developing countries. A replacement of such quotas, by tariffs leads to full capacity utilization under assumptions of both...
Persistent link: https://www.econbiz.de/10014396017
financial market variables exchange rate flexibility, credit quality, overhead costs, and banking competition were found to …
Persistent link: https://www.econbiz.de/10014398656
-period model of spatial competition. All lenders face uncertainty with regard to borrowers’ creditworthiness, but, in the process …
Persistent link: https://www.econbiz.de/10014399942
This paper presents a model of a banking industry with heterogeneous banks that delivers predictions on the relationship between banks'' risk of failure, market structure, bank ownership, and banks'' screening and bankruptcy costs. These predictions are explored empirically using a panel of...
Persistent link: https://www.econbiz.de/10014400121