Endogenous credit-card acceptance in a model of precautionary demand for money

A credit-card acceptance decision by retailers is embedded into a simple model of precautionary demand for money. The model gives a new explanation for how the use of credit-cards can differ so widely across countries. Retailers’ propensity to accept cards reduces the need for buyers to hold cash as...

Ausführliche Beschreibung

Gespeichert in:

Bibliographische Detailangaben
Veröffentlicht in:	Oxford economic papers 2005-01, Vol.57 (1), p.157-168
Hauptverfasser:	Masters, Adrian, Rodríguez-Reyes, Luis Raúl
Format:	Artikel
Sprache:	eng
Schlagworte:	Acceptance Cash Consumer economics Credit cards Demand Economic externalities Economic models Equilibrium Expected utility Financial transactions Goods Market equilibrium Opportunity costs Precautionary money demand Purchasing Retail stores Studies
Online-Zugang:	Volltext
Tags:	Tag hinzufügen Keine Tags, Fügen Sie den ersten Tag hinzu!

container_end_page	168
container_issue	1
container_start_page	157
container_title	Oxford economic papers
container_volume	57
creator	Masters, Adrian Rodríguez-Reyes, Luis Raúl
description	A credit-card acceptance decision by retailers is embedded into a simple model of precautionary demand for money. The model gives a new explanation for how the use of credit-cards can differ so widely across countries. Retailers’ propensity to accept cards reduces the need for buyers to hold cash as the chance of a stock-out (of cash) is reduced. When retailers make their decision with respect to credit-card acceptance they do not take into account the effect that decision has on other sellers. This externality generates multiple equilibria over some portions of the parameter space.
doi_str_mv	10.1093/oep/gpi009
format	Article
fullrecord	<record><control><sourceid>jstor_proqu</sourceid><recordid>TN_cdi_proquest_miscellaneous_1866650216</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><jstor_id>3488841</jstor_id><sourcerecordid>3488841</sourcerecordid><originalsourceid>FETCH-LOGICAL-c412t-2a2a91748c485b16eef04dd46d0131373186b6287c6d23e1a3f6abdfca2758c33</originalsourceid><addsrcrecordid>eNpdkM1LAzEUxIMoWKsXzx6CJxHWJptskj1KrV_4cVEQLyFN3srWNlmTLdj_3pQVD57eYX4zvBmEjim5oKRmkwDd5KNrCal30IhywQumaLmLRoQwUkhRsX10kNKCEMJJJUfoaeZd-AAf1gnbCK7tC2uiw8Za6HrjLeDWY4NXwcEShwZ3EaxZ923wJm6wg5XxDjchZsLD5hDtNWaZ4Oj3jtHr9exlels8PN_cTS8fCstp2RelKU1NJVeWq2pOBUBDuHNcOEIZZZJRJeaiVNIKVzKghjXCzF1jTSkrZRkbo7Mht4vhaw2p16s2WVgujYdcRWe_EBUpqcjo6T90EdbR5-80rWtZK6W2eecDZGNIKUKju9iuckNNid4uq_Oyelg2wycDvEh9iH8k4zmK0ywXg9ymHr7_ZBM_tZBMVvr27V3Te84eqyulOfsBuLiEMg</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>199798883</pqid></control><display><type>article</type><title>Endogenous credit-card acceptance in a model of precautionary demand for money</title><source>Jstor Complete Legacy</source><source>Oxford University Press Journals All Titles (1996-Current)</source><creator>Masters, Adrian ; Rodríguez-Reyes, Luis Raúl</creator><creatorcontrib>Masters, Adrian ; Rodríguez-Reyes, Luis Raúl</creatorcontrib><description>A credit-card acceptance decision by retailers is embedded into a simple model of precautionary demand for money. The model gives a new explanation for how the use of credit-cards can differ so widely across countries. Retailers’ propensity to accept cards reduces the need for buyers to hold cash as the chance of a stock-out (of cash) is reduced. When retailers make their decision with respect to credit-card acceptance they do not take into account the effect that decision has on other sellers. This externality generates multiple equilibria over some portions of the parameter space.</description><identifier>ISSN: 0030-7653</identifier><identifier>ISSN: 1464-3812</identifier><identifier>EISSN: 1464-3812</identifier><identifier>DOI: 10.1093/oep/gpi009</identifier><identifier>CODEN: OXEPA8</identifier><language>eng</language><publisher>Oxford: Oxford University Press</publisher><subject>Acceptance ; Cash ; Consumer economics ; Credit cards ; Demand ; Economic externalities ; Economic models ; Equilibrium ; Expected utility ; Financial transactions ; Goods ; Market equilibrium ; Opportunity costs ; Precautionary money demand ; Purchasing ; Retail stores ; Studies</subject><ispartof>Oxford economic papers, 2005-01, Vol.57 (1), p.157-168</ispartof><rights>Copyright 2005 Oxford University Press</rights><rights>Copyright Oxford University Press(England) Jan 1, 2005</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c412t-2a2a91748c485b16eef04dd46d0131373186b6287c6d23e1a3f6abdfca2758c33</citedby></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/3488841$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://www.jstor.org/stable/3488841$$EHTML$$P50$$Gjstor$$H</linktohtml><link.rule.ids>314,776,780,799,27901,27902,57992,58225</link.rule.ids></links><search><creatorcontrib>Masters, Adrian</creatorcontrib><creatorcontrib>Rodríguez-Reyes, Luis Raúl</creatorcontrib><title>Endogenous credit-card acceptance in a model of precautionary demand for money</title><title>Oxford economic papers</title><addtitle>Oxf. Econ. Pap</addtitle><description>A credit-card acceptance decision by retailers is embedded into a simple model of precautionary demand for money. The model gives a new explanation for how the use of credit-cards can differ so widely across countries. Retailers’ propensity to accept cards reduces the need for buyers to hold cash as the chance of a stock-out (of cash) is reduced. When retailers make their decision with respect to credit-card acceptance they do not take into account the effect that decision has on other sellers. This externality generates multiple equilibria over some portions of the parameter space.</description><subject>Acceptance</subject><subject>Cash</subject><subject>Consumer economics</subject><subject>Credit cards</subject><subject>Demand</subject><subject>Economic externalities</subject><subject>Economic models</subject><subject>Equilibrium</subject><subject>Expected utility</subject><subject>Financial transactions</subject><subject>Goods</subject><subject>Market equilibrium</subject><subject>Opportunity costs</subject><subject>Precautionary money demand</subject><subject>Purchasing</subject><subject>Retail stores</subject><subject>Studies</subject><issn>0030-7653</issn><issn>1464-3812</issn><issn>1464-3812</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2005</creationdate><recordtype>article</recordtype><recordid>eNpdkM1LAzEUxIMoWKsXzx6CJxHWJptskj1KrV_4cVEQLyFN3srWNlmTLdj_3pQVD57eYX4zvBmEjim5oKRmkwDd5KNrCal30IhywQumaLmLRoQwUkhRsX10kNKCEMJJJUfoaeZd-AAf1gnbCK7tC2uiw8Za6HrjLeDWY4NXwcEShwZ3EaxZ923wJm6wg5XxDjchZsLD5hDtNWaZ4Oj3jtHr9exlels8PN_cTS8fCstp2RelKU1NJVeWq2pOBUBDuHNcOEIZZZJRJeaiVNIKVzKghjXCzF1jTSkrZRkbo7Mht4vhaw2p16s2WVgujYdcRWe_EBUpqcjo6T90EdbR5-80rWtZK6W2eecDZGNIKUKju9iuckNNid4uq_Oyelg2wycDvEh9iH8k4zmK0ywXg9ymHr7_ZBM_tZBMVvr27V3Te84eqyulOfsBuLiEMg</recordid><startdate>20050101</startdate><enddate>20050101</enddate><creator>Masters, Adrian</creator><creator>Rodríguez-Reyes, Luis Raúl</creator><general>Oxford University Press</general><general>Oxford Publishing Limited (England)</general><scope>BSCLL</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20050101</creationdate><title>Endogenous credit-card acceptance in a model of precautionary demand for money</title><author>Masters, Adrian ; Rodríguez-Reyes, Luis Raúl</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c412t-2a2a91748c485b16eef04dd46d0131373186b6287c6d23e1a3f6abdfca2758c33</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2005</creationdate><topic>Acceptance</topic><topic>Cash</topic><topic>Consumer economics</topic><topic>Credit cards</topic><topic>Demand</topic><topic>Economic externalities</topic><topic>Economic models</topic><topic>Equilibrium</topic><topic>Expected utility</topic><topic>Financial transactions</topic><topic>Goods</topic><topic>Market equilibrium</topic><topic>Opportunity costs</topic><topic>Precautionary money demand</topic><topic>Purchasing</topic><topic>Retail stores</topic><topic>Studies</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Masters, Adrian</creatorcontrib><creatorcontrib>Rodríguez-Reyes, Luis Raúl</creatorcontrib><collection>Istex</collection><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Oxford economic papers</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Masters, Adrian</au><au>Rodríguez-Reyes, Luis Raúl</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Endogenous credit-card acceptance in a model of precautionary demand for money</atitle><jtitle>Oxford economic papers</jtitle><addtitle>Oxf. Econ. Pap</addtitle><date>2005-01-01</date><risdate>2005</risdate><volume>57</volume><issue>1</issue><spage>157</spage><epage>168</epage><pages>157-168</pages><issn>0030-7653</issn><issn>1464-3812</issn><eissn>1464-3812</eissn><coden>OXEPA8</coden><abstract>A credit-card acceptance decision by retailers is embedded into a simple model of precautionary demand for money. The model gives a new explanation for how the use of credit-cards can differ so widely across countries. Retailers’ propensity to accept cards reduces the need for buyers to hold cash as the chance of a stock-out (of cash) is reduced. When retailers make their decision with respect to credit-card acceptance they do not take into account the effect that decision has on other sellers. This externality generates multiple equilibria over some portions of the parameter space.</abstract><cop>Oxford</cop><pub>Oxford University Press</pub><doi>10.1093/oep/gpi009</doi><tpages>12</tpages></addata></record>
fulltext	fulltext
identifier	ISSN: 0030-7653
ispartof	Oxford economic papers, 2005-01, Vol.57 (1), p.157-168
issn	0030-7653 1464-3812 1464-3812
language	eng
recordid	cdi_proquest_miscellaneous_1866650216
source	Jstor Complete Legacy; Oxford University Press Journals All Titles (1996-Current)
subjects	Acceptance Cash Consumer economics Credit cards Demand Economic externalities Economic models Equilibrium Expected utility Financial transactions Goods Market equilibrium Opportunity costs Precautionary money demand Purchasing Retail stores Studies
title	Endogenous credit-card acceptance in a model of precautionary demand for money
url	https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-02-19T03%3A37%3A06IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-jstor_proqu&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Endogenous%20credit-card%20acceptance%20in%20a%20model%20of%20precautionary%20demand%20for%20money&rft.jtitle=Oxford%20economic%20papers&rft.au=Masters,%20Adrian&rft.date=2005-01-01&rft.volume=57&rft.issue=1&rft.spage=157&rft.epage=168&rft.pages=157-168&rft.issn=0030-7653&rft.eissn=1464-3812&rft.coden=OXEPA8&rft_id=info:doi/10.1093/oep/gpi009&rft_dat=%3Cjstor_proqu%3E3488841%3C/jstor_proqu%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=199798883&rft_id=info:pmid/&rft_jstor_id=3488841&rfr_iscdi=true