Munich Personal RePEc Archive

The Pricing of Payments

Krueger, Malte (2009): The Pricing of Payments.

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Abstract

The pricing of payments has received increasing attention of regulators. In many cases, regulators are concerned that consumers do not face cost based prices. They argue that without cost based prices consumers will make inefficient choices. In this paper, it is argued that both, economics of scale and the particular laws governing pricing in two-sided markets provide a case against cost based pricing.

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