A number of jurisdictions are considering imposing price caps on the interchange fees that card issuers receive from merchant acquirers when cardholders pay with their cards. Several have already done so. This paper examines the net impact of these price caps on consumers. The economics of...

If an intermediary offers sellers a platform to reach consumers, he may face a hold-up problem: sellers suspect that the intermediary will enter their respective market, competing with them. As sellers fear that they cannot recoup their sunk costs of entry, they do not join the platform. Hence,...

This paper investigates optimal airport pricing when airlines provide imperfect substitutes products, and make decisions on capacity, scheduling and pricing. We show that the first-best toll per flight may be higher than the simple market-shares formula that were recently derived for Cournot...