This paper makes the case that the structure of payment systems is such that, in contrast to competition in normal markets, private incentives can encourage activities and pricing that do not necessarily improve social welfare. Furthermore, while there is usually a reasonable presumption that...

Purpose – This paper aims to provide an in‐depth analysis of the economic, operational and strategic aspects of the Toyota recall crisis, as well as its implications for the global auto industry and its competitive dynamics in the future. Design/methodology/approach – The paper provided a...