Tosza, Katarzyna (2009): Payment Card Systems as an Example of two-sided Markets - a Challenge for Antitrust Authorities. Published in: Yearbook of Antitrust and Regulatory Studies , Vol. 2009, No. 2(2) (2009): pp. 125-140.
Download (288kB) | Preview
This article aims to present the concept of two-sided markets on the example of payment card systems, which have attracted the attention of regulatory and antitrust authorities in recent years. First, the paper offers a few insights into the basic economic theory behind two-sided markets. Second, it presents a brief description of payment card systems and their features. The following analysis focuses on arguments that speak in favour of a regulatory or antitrust intervention into payment card systems. Finally, some of the potential problems that antitrust authorities must face when assessing two-sided markets are presented on the basis of an assessment of the decisional practice of the UOKiK President and the European Commission.
|Item Type:||MPRA Paper|
|Original Title:||Payment Card Systems as an Example of two-sided Markets - a Challenge for Antitrust Authorities|
|Keywords:||two-sided markets, antitrust v. regulation, interchange fees, payment card systems|
|Subjects:||K - Law and Economics > K2 - Regulation and Business Law > K21 - Antitrust Law|
|Depositing User:||Michał Mijal|
|Date Deposited:||21. Jul 2010 06:07|
|Last Modified:||12. Feb 2013 11:33|
Bernat T., Problemy globalizacji gospodarki [Problems of globalisation of economy], Szczecin 2003.
Buccirossi P. (ed.), Handbook of Antitrust Economics, MIT Press, Cambridge.
Caillaud B., Jullien B., “Chicken & Egg: Competition among Intermediation Service Providers” (2003) 34(2) The RAND Journal of Economics.
Chang H., Evans D.S., Garcia Swartz D.D., “The Effect of Regulatory Intervention in Two-Sided Markets: An Assessment of Interchange-Fee Capping in Australia” (2005) 4(4) Review of Network Economics.
Emch E., Thompson T.S., “Market Definition and Market Power in Payment Card Networks” (2006) 5(1) Review of Network Economics.
European Central Bank, The Eurosystem’s View of a “SEPA for Cards” [available at: www.ecb.int/pub/pdf/other/eurosystemsviewsepacardsen.pdf ]
Evans D., “The Antitrust Economics of Multi-Sided Platform Markets” (2003) 20(2) Yale Journal on Regulation.
Ferrando J., Gabszewicz J.J., Laussel D., Sonnac N., “Two-Sided Network Effects and Competition : An Application to Media Industries”, Centre de Recherche en Economie et Statistiques, Working Paper no 2004-09.
Filistrucchi L., “A SSNIP Test for Two-Sided Markets: The Case of Media” NET Institute Working Paper No. 08-34.
Frankel A.S., Shampine A.L., “The Economic Effects of Interchange Fees” (2006) 73(3) Antitrust Law Journal.
Garcia Swartz D.D., Hahn R.W., Farrar A. L., “The Move toward a Cashless Society: a Closer Look at Payment Instrument Economics” (2006) 5(2) Review of Network Economics.
Guerin-Calvert M.E., Ordover J.A., “Merchant Benefits and Public Policy towards Interchange: an Economic Assessment” (2005).
Heimler A., Ennis S.F., “Competition and Efficiency in Payment Cards: Which Options for SEPA?” (2008) 31(1) World Competition.
Hesse R.B., Soven J.H., “Defining Relevant Product Markets in Electronic Payment Network Antitrust Cases” (2006) 73(3) Antitrust Law Journal.
Katz M.L., Shapiro C., “Network Externalities, Competition, and Compatibility” (1985) 75(3) The American Economic Review.
Klein B., Lerner A.V., Murphy K. M., Plache L. L., “Competition in Two-Sided Markets: The Antitrust Economics of Payment Card Interchange Fees” (2006) 73(3) Antitrust Law Journal.
Muris T.J., “Payment Card Regulation and the (Mis)Application of the Economics of Two-Sided Markets” (2005) 3 Columbia Business Law Review, pp. 515-550.
Pardolesi R., Renda A., “The European Commission’s Case Against Microsoft: Kill Bill?”, (2004) 27(4) World Competition.
Parker C., Scott C., Lacey N., Braithwaite J. (eds.), Regulating law, Oxford University Press 2004.
Perloff J.M., Microeconomics, Pearson 2007.
Rochet J., Tirole J., “Platform Competition in Two-Sided Markets” (2003) 1(4) Journal of the European Economic Association.
Semeraro S., “Credit Card Interchange Fees: Debunking Six Myths” (2008) 27(2) Banking & Financial Services Policy Report.
Szpringer W., “Opłata za autoryzację transakcji kartami płatniczymi – nowy aspekt ochrony konsumenta?” [“Payment for authorization of transactions with payment cards – New aspect of consumer protection?”] (2001) 12 Prawo Bankowe.
Szpringer W., “Opłata za autoryzację transakcji kartami płatniczymi – punkt widzenia banków” [“Payment for authorization of transactions with payment cards – a point of view of banks”] (2002) 4 Prawo Bankowe.
Vickers J., “Public Policy and the Invisible Price: Competition Law, Regulation, and the Interchange Fee”, Federal Reserve Bank of Kansas City Payments Systems Research Conference Proceedings [available at: http://www.oft.gov.uk/shared_oft/speeches/spe0305.pdf].
Wey E.G., The Price Theory of Two-Sided Markets, December 2006 [available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1324317].