This paper develops a model to analyse the Australian health insurance system when individuals differ in their health risk and this risk is private information. In Australia private insurance both duplicates and supplements public insurance. We show that, absent any other interventions, this...

The Reserve Bank of Australia (RBA) moved to reform credit card associations by increasing entry, allowing merchants to surcharge for card payments and regulating the interchange fee. We develop a simple model of payment systems designed to analyse the impact of these reforms. We build on the...

For risky infrastructure investment, 'regulatory truncation' can diminish investment incentives. We model the truncation problem, showing the link to regulatory commitment, and derive optimal state-contingent access prices. If regulators cannot commit ex ante to specific ex post access prices...