Published by De Gruyter

Volume 15 Issue 3

Issue of Review of Network Economics

Contents
Journal Overview

Publicly Available November 22, 2017

Frontmatter

Page range: i-iii

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October 11, 2017

Merchant Acceptance of Payment Cards: “Must Take” or “Wanna Take”?

David Bounie, Abel François, Leo Van Hove

Page range: 117-146

Abstract

In recent years, regulators in various parts of the world have capped interchange fees on debit and credit cards. The justification for the caps rests to a large extent on the argument that these cards have, for certain merchants, become must-take cards rather than “wanna-take cards.” That is, there are merchants who accept payment cards not because they bring net convenience benefits but out of fear of losing profitable business to card-accepting competitors. This paper presents an original approach that allows to quantify, for the first time, the relative importance of the two motivations. We find, for the case of France in 2008, that the must-take phenomenon effectively exists, but that it applies to only 5.8–19.8 percent of the card-accepting merchants and to a mere 3.9–13.5 percent of all retailers.

September 11, 2017

Payment Instruments, Financial Privacy and Online Purchases

Yann Balgobin, David Bounie, Martin Quinn, Patrick Waelbroeck

Page range: 147-168

Abstract

The protection of financial personal data has become a major concern for Internet users in the digital economy. This paper investigates whether the consumers’ use of non-bank payment instruments that preserve financial privacy from banks and relatives may increase their online purchases. We analyze the purchasing decisions and the use of bank and non-bank payment instruments of a representative sample of French Internet consumers in 2015. Using two econometric methods, namely a two-step regression and a Bayesian Markov Chain Monte Carlo model to account for a potential endogeneity problem, we find evidence that the use of a non-bank payment instrument positively influences consumers’ online purchases.

About this journal

The Review of Network Economics seeks to help policy makers, academics, and practitioners keep informed of new research and policy debate in network economics and related subjects that are relevant to the study of network industries.

By publishing high quality research on topical issues relevant to network industries, it is hoped readers will be able to gain a deeper understanding of the economic issues involved and that this will improve the quality of decision making by private and public organisations, and debate among researchers. The articles can cover specific network industries, or may deal with general issues that have relevance to a number of different network industries, including topics in the economics of networks, regulation, competition law, or industrial organisation. Papers that provide insights into policy debates are especially welcome, as are up-to-date surveys, book reviews, and comments.

Topics

Network industries
Economics of networks
Regulation and competition law
Industrial organization
Energy
Market exchanges and intermediaries
Media
On-line services
Payment systems
Postal services
Software platforms
Telecommunications and transportation networks

Article formats

Up-to-date surveys, theoretical and empirical research articles, book reviews, and comments