Title
Feedback loop effects in payment card markets: Empirical evidence
Date Issued
01 June 2012
Access level
metadata only access
Resource Type
journal article
Author(s)
University of Granada
Abstract
While some studies have assumed that mature and well-established platforms do not exhibit feedback loop effects, other recent contributions have suggested that these effects may exist. Using a unique database that provides detailed information on both cardholder and merchant sides of the Spanish payment card market, we find empirical evidence of feedback loop effects. We also offer some evidence on the relative value that consumers (merchants) place on network characteristics such as the degree of merchant acceptance (cardholder adoption) and prices. © 2012 De Gruyter. All rights reserved.
Volume
11
Issue
2
Language
English
OCDE Knowledge area
Economía
Subjects
Scopus EID
2-s2.0-84870281460
Source
Review of Network Economics
ISSN of the container
14469022
Sponsor(s)
Author Notes: Financial support from Junta de Andalucía, P08-SEJ-03781 (Excellence Groups) and MICINN-FEDER ECO2008-05243/ECON is gratefully acknowledged. Santiago Carbó and Francisco Rodríguez also wish to thank the Fundación BBVA for financial support provided via the “Ayuda a la Investigación en Ciencias Sociales”. We would like to express our gratitude for the comments provided on the presentation of the preliminary findings of the paper by Jean-Charles Rochet, Paul Seabright and other participants at the Conference on Competition Policy in Two-Sided Markets held at IDEI, Toulouse in June 2006. We would also like to thank Elizabeth Kiser, Mark Manuszak, Andrew Cohen and other participants in the seminar held for the Board of Governors of the Federal Reserve System, Washington in November 2006 for their comments on an earlier version of this paper. We would also like to thank to Heiko Schmiedel and other participants in the international Conference on Payment Markets: Theory, Evidence, and Policy held at University of Granada (Spain) in June 2010 for their comments. The authors wish to thank Joanna Stavins and participants of IIOC 2011 for their comments. Comments from Bob Chakravorti, Wilko Bolt, Nikolaos Georgantzís, Manuel Illueca, Aitor Ciarreta, Jonathan Williams, James McAndrews, David Humphrey, Robert Hunt, Timothy Hannan, Ramón Faulí, Cristina Mazón, Lourdes Moreno and two anonymous referees are also acknowledged and appreciated. The views expressed in this paper are those of the authors and do not necessarily reflect the views of the Federal Reserve System or its staff.
Sources of information:
Directorio de Producción Científica
Scopus