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...

EU rules on the functioning of a Single European Payment Area (SEPA) Union-wide with free movement of cross-border services have an impact upon fair competition in the internal market for both consumers and smaller businesses. Under Article 102 (a) TFEU, the cost analysis of pricing must be...

We investigate the effects of a non-financial firm's entry on competition in the retail payments market, from the perspective of duopoly between an incumbent and an entrant in conditions of vertical restraints. Considering the cross-platform externalities in payment processing, differentiated...