Jump to ContentJump to Main Navigation
Show Summary Details

Review of Network Economics

Editor-in-Chief: Grzybowski, Lukasz

Ed. by Briglauer, Wolfgang / Goetz, Georg / Pereira, Pedro


IMPACT FACTOR 2015: 0.429
5-year IMPACT FACTOR: 0.682

SCImago Journal Rank (SJR) 2015: 0.371
Source Normalized Impact per Paper (SNIP) 2015: 0.719
Impact per Publication (IPP) 2015: 0.580

Online
ISSN
1446-9022
See all formats and pricing



Select Volume and Issue

Issues

The No Surcharge Rule and Card User Rebates: Vertical Control by a Payment Network

Marius Schwartz1 / Daniel R. Vincent2

1Georgetown University

2University of Maryland, College Park,

Citation Information: Review of Network Economics. Volume 5, Issue 1, ISSN (Online) 1446-9022, ISSN (Print) 2194-5993, DOI: https://doi.org/10.2202/1446-9022.1090, March 2006

Publication History

Published Online:
2006-03-01

The No Surcharge Rule (NSR) prevents merchants from charging more to consumers who pay by card versus other means ("cash"). We consider a payment network facing local monopolist merchants that serve two consumer groups, card users and cash users. Unlike in prior work, transaction quantities are variable. The NSR raises network profit and harms cash users and merchants; overall welfare rises if and only if the ratio of cash to card users is sufficiently large. With the NSR, the network will grant rebates to card users whenever feasible. If rebates are not feasible, the NSR can harm even card users.

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Young Sik Kim and Manjong Lee
Journal of Macroeconomics, 2015
[2]
Oz Shy
Review of Industrial Organization, 2011, Volume 38, Number 2, Page 119
[3]
RON BORZEKOWSKI, K. KISER ELIZABETH, and AHMED SHAISTA
Journal of Money, Credit and Banking, 2008, Volume 40, Number 1, Page 149
[4]
Manjong Lee
Journal of Macroeconomics, 2014, Volume 41, Page 53
[5]
Frans Saxén
Journal of Industry, Competition and Trade, 2014, Volume 14, Number 1, Page 39
[6]
Julian Wright
The RAND Journal of Economics, 2012, Volume 43, Number 4, Page 761
[7]
Carlos Castillo Peces, Carmelo Mercado Idoeta, and Daniel Corral de la Mata
Investigaciones Europeas de Dirección y Economía de la Empresa, 2011, Volume 17, Number 3, Page 151
[8]
Zhu Wang
International Journal of Industrial Organization, 2010, Volume 28, Number 1, Page 86
[9]
Oz Shy and Zhu Wang
American Economic Review, 2011, Volume 101, Number 4, Page 1575
[10]
Marianne Verdier
Journal of Economic Surveys, 2011, Volume 25, Number 2, Page 273

Comments (0)

Please log in or register to comment.