This paper investigates the competition between payment card issuers in an artificial payment card market. In the market we model the interactions between consumers, merchants and competing card issuers and obtain the optimal pricing structure for card issuers. We allow card issuers to charge...

This paper models the demand for merchant acceptance and consumer usage of a four-party payment scheme in the bill payment market. Within a cointegrating framework, demand equations are estimated using vector error correction models. Results illustrate the importance of network effects in...

Lenders can exploit households' payment data to infer their creditworthiness. When households value privacy, they then face a tradeoff between protecting such privacy and credit conditions. We study how the introduction of an informationally more intrusive digital payment vehicle affects...