The market for payment cards is inherently two sided. Consumers benefit from increased merchant acceptance of payment cards and vice versa. To quantify the interdependence of consumer and merchants or network externalities, we construct and estimate a structural two-sided model of a payment...

Banks have recently introduced the credit card system. Credit cards are issued to good customers, having current or savings accounts, for free of charges. The credit card enables a customer to purchase goods or services from certain retail or service establishments up to a certain limit with out...