Theory of Credit Card Networks: A Survey of the Literature

Credit cards provide benefits to consumers and merchants not provided by other payment instruments as evidenced by their explosive growth in the number and value of transactions over the last 20 years. Recently, credit card networks have come under scrutiny from regulators and antitrust authorities...

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Veröffentlicht in:The review of network economics 2003-06, Vol.2 (2), p.50-68
1. Verfasser: Chakravorti, Sujit
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container_title The review of network economics
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creator Chakravorti, Sujit
description Credit cards provide benefits to consumers and merchants not provided by other payment instruments as evidenced by their explosive growth in the number and value of transactions over the last 20 years. Recently, credit card networks have come under scrutiny from regulators and antitrust authorities around the world. The costs and benefits of credit cards to network participants are discussed. Focusing on interrelated bilateral transactions, several theoretical models have been constructed to study the implications of several business practices of credit card networks. The results and implications of these economic models along with future research topics are discussed.
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source EZB-FREE-00999 freely available EZB journals; De Gruyter journals
subjects Consumers
Credit
Debt
Economic models
Merchants
Networks
title Theory of Credit Card Networks: A Survey of the Literature
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