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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/28484
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| Title: | Nonbanks in the Payments System: Vertical Integration Issues |
| Authors: | Economides, Nicholas - NYU Stern School of Business |
| Keywords: | payments system; credit cards; debit cards; non-banks; vertical
integration; market power; monopoly |
| Issue Date: | 2007 |
| Series/Report no.: | NET Institute Working Paper;07-06 |
| Abstract: | We discuss and evaluate the incentives for vertical expansion and
vertical mergers in the payments systems industry paying particular
attention to the implications of the existence of network effects in
this industry. We assess the incentives of large merchants to extend
vertically into payments systems, noting that this incentive is
maximized when there is significant market power in payments systems and
merchants are not sufficiently compensated for the business they bring
to the network. |
| URI: | http://hdl.handle.net/2451/28484 |
| Appears in Collections: | NET Institute Working Papers Series
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