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The role of interchange fees in two-sided markets: An empirical investigation on payment cards

Research output: Contribution to journal › Article › peer-review

Standard Standard

The role of interchange fees in two-sided markets: An empirical investigation on payment cards. / Carbo-Valverde, S.; Chakravorti, S.; Rodriguez-Fernandez, F.
In: Review of Economics and Statistics, Vol. 98, No. 2, 21.04.2016, p. 367-381.

Research output: Contribution to journal › Article › peer-review

HarvardHarvard

Carbo-Valverde, S, Chakravorti, S & Rodriguez-Fernandez, F 2016, 'The role of interchange fees in two-sided markets: An empirical investigation on payment cards', Review of Economics and Statistics, vol. 98, no. 2, pp. 367-381. https://doi.org/10.1162/REST_a_00502

APA

Carbo-Valverde, S., Chakravorti, S., & Rodriguez-Fernandez, F. (2016). The role of interchange fees in two-sided markets: An empirical investigation on payment cards. Review of Economics and Statistics, 98(2), 367-381. https://doi.org/10.1162/REST_a_00502

CBE

Carbo-Valverde S, Chakravorti S, Rodriguez-Fernandez F. 2016. The role of interchange fees in two-sided markets: An empirical investigation on payment cards. Review of Economics and Statistics. 98(2):367-381. https://doi.org/10.1162/REST_a_00502

MLA

Carbo-Valverde, S., S. Chakravorti and F. Rodriguez-Fernandez. "The role of interchange fees in two-sided markets: An empirical investigation on payment cards". Review of Economics and Statistics. 2016, 98(2). 367-381. https://doi.org/10.1162/REST_a_00502

VancouverVancouver

Carbo-Valverde S, Chakravorti S, Rodriguez-Fernandez F. The role of interchange fees in two-sided markets: An empirical investigation on payment cards. Review of Economics and Statistics. 2016 Apr 21;98(2):367-381. doi: 10.1162/REST_a_00502

Author

Carbo-Valverde, S. ; Chakravorti, S. ; Rodriguez-Fernandez, F. / The role of interchange fees in two-sided markets: An empirical investigation on payment cards. In: Review of Economics and Statistics. 2016 ; Vol. 98, No. 2. pp. 367-381.

RIS

TY - JOUR

T1 - The role of interchange fees in two-sided markets: An empirical investigation on payment cards

AU - Carbo-Valverde, S.

AU - Chakravorti, S.

AU - Rodriguez-Fernandez, F.

PY - 2016/4/21

Y1 - 2016/4/21

N2 - We study the impact of reductions in interchange fees on payment card services. We find that consumer and merchant acceptance and transaction volumes increased when interchange fees were reduced. Our results suggest that a 10 percent reduction in the rate of decline per quarter in the average interchange fee by an acquirer resulted in a rate of increase in merchant acceptance per quarter of up to 1.4 percent. Additionally, a 10 percent increase in the rate of interaction of merchant acceptance and the total number of cards increased the rate of quarterly issuer transaction volumes up to 1.7 percent.

AB - We study the impact of reductions in interchange fees on payment card services. We find that consumer and merchant acceptance and transaction volumes increased when interchange fees were reduced. Our results suggest that a 10 percent reduction in the rate of decline per quarter in the average interchange fee by an acquirer resulted in a rate of increase in merchant acceptance per quarter of up to 1.4 percent. Additionally, a 10 percent increase in the rate of interaction of merchant acceptance and the total number of cards increased the rate of quarterly issuer transaction volumes up to 1.7 percent.

UR - http://dx.doi.org/10.7910/DVN/27515

U2 - 10.1162/REST_a_00502

DO - 10.1162/REST_a_00502

M3 - Article

VL - 98

SP - 367

EP - 381

JO - Review of Economics and Statistics

JF - Review of Economics and Statistics

SN - 0034-6535

IS - 2

ER -