Cooperation among Competitors¶
Rochet, J., & Tirole, J. (2002). Cooperation among Competitors: Some Economics of Payment Card Associations. RAND Journal of Economics, 33(4), 549-570.
Cited by¶
1 citation across 1 artifact.
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Primes¶
- Two Sided Market
- Marketplaces — buyers and sellers, where each new participant on either side raises the platform's value to the other, so balanced recruitment is the central problem. Payment systems — account-holders and merchants, with asymmetric pricing (acceptance everywhere versus use by everyone) addressed historically through interchange structures that subsidise one side.
This sourceModels payment-card interchange — subsidizing the elastic cardholder side and monetizing the inelastic merchant side.
- Marketplaces — buyers and sellers, where each new participant on either side raises the platform's value to the other, so balanced recruitment is the central problem. Payment systems — account-holders and merchants, with asymmetric pricing (acceptance everywhere versus use by everyone) addressed historically through interchange structures that subsidise one side.
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