This paper examines the costs borne by financial institutions, merchants, and consumers in making, facilitating and … costs vary at different transaction sizes and, for merchants, how costs differ between small and large entities. The results … and private costs varies significantly across instruments. The greater share of the overall cost is borne by merchants …

It is well-known that switching costs may facilitate monopoly pricing in a market with price competition between two … pricing entails second degree price dierentiotation with inecient contracts for low demand types. We show that introducing con … monopoly pricing. …