Review of Network Economics
Editor-in-Chief: Grzybowski, Lukasz
Ed. by Briglauer, Wolfgang / Goetz, Georg / Pereira, Pedro
4 Issues per year
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
The No Surcharge Rule and Card User Rebates: Vertical Control by a Payment Network
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.
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.