Two-sided market, R&D, and payments system evolution

• 成果类型: Article
• 署名作者: Li, Bin Grace; McAndrews, James; Wang, Zhu
• 署名单位: International Monetary Fund; Federal Reserve System - USA; Federal Reserve Bank - Richmond
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2019.06.005
• 发表日期: 2020
• 页码: 180-199
• 关键词: Two-sided market; technology adoption; R&D; Payments system; Interchange fee

摘要

It takes many years for more efficient electronic payments to be widely used, and the fees that merchants (consumers) pay for using those services are increasing (decreasing) over time. We address these puzzles by studying payments system evolution with a dynamic model in a two-sided market setting. We calibrate the model to U.S. payment card data and conduct welfare and policy analysis. Our analysis shows that the market power of electronic payment networks plays important roles in explaining the slow adoption and asymmetric price changes, and the welfare impact of regulations may vary significantly through the endogenous R&D channel. (c) 2019 Elsevier B.V. All rights reserved.