Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/128385
Authors: 
Lipatov, Vilen
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5684
Abstract: 
In framework of Rochet and Tirole (2011), I allow for partial merchant internalization and study how MIT threshold is related to levels of inter-change fee that maximize various components of social welfare. I find that cost absorption on the side of issuers and merchant heterogeneity each bias MIT threshold upward from TUS maximizing level.
Subjects: 
MIT
merchant internalization
payment cards
two-sided markets
JEL: 
E42
G28
K21
L49
Document Type: 
Working Paper

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