Bolt, Wilko (contributor); Chakravorti, Sujit (contributor) - 2008
results can be summarized as follows. The structure of prices is determined by the level of the bank's cost to provide payment … identify equilibria where the bank finds it profitable to offer one or both payment cards. Our model predicts that when … merchants are restricted to charging a uniform price for goods that they sell, the bank benefits while consumers and merchants …