Governance, Issuance Restrictions, And Competition In Payment Card Networks

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Robert S. Pindyck;
(2007)
  • Subject:
    • jel: jel:L40 | jel:G20 | jel:L44

I discuss the antitrust suit brought by the U.S. Department of Justice against Visa and MasterCard in 1998. Banks that issue Visa cards are free to also issue MasterCard cards, and vice versa, and many banks issue the cards of both networks. However, both Visa and Maste... View more
  • References (8)

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    Evans, David S., and Richard Schmalensee, Paying with Plastic, 2nd Ed., Cambridge, MA: MIT Press, 2005.

    Evans, David S., and Richard Schmalensee, “The Industrial Organization of Markets with TwoSided Platforms,” in Issues in Competition Law and Policy, W. Dale Collins, ed., ABA Press, forthcoming, 2007.

    Pindyck, Robert S., and Daniel L. Rubinfeld, Microeconomics, 6th Ed., Upper Saddle River, NJ: Prentice-Hall, 2005.

    Rochet, Jean-Charles, and Jean Tirole, “Cooperation among Competitors: Some Economics of Credit Card Associations,” RAND Journal of Economics, 33 (Winter 2002): 549-570.

    United States v. Visa USA Inc., Visa International Corp., and MasterCard International Incorporated, 163 F. Supp. 2d 322 (S.D.N.Y. 2001), disposition affirmed, 344 F.3d 229, No. 02-6074, 02-6076, 02-6078 (2d Cir. Sep. 17, 2003).

    U.S. Department of Justice, United States of America v. Visa U.S.A. Inc., Visa International Corp., and MasterCard International Incorporated, Complaint for Equitable Relief for Violations of 15 U.S.C. §1, October 7, 1998.

    U.S. Department of Justice and Federal Trade Commission, Horizontal Merger Guidelines, 1997.

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