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Harmonizing Europe’s payment systems: an uphill battle?

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  • Leibbrandt, Gottfried

    (MERIT)

Abstract

A model is introduced to analyze the effect of network effects and transactions patterns on the decision by banks (not) to standardize payment systems both domestically and across borders. If only a small share of all transactions is cross-border, banks have strong incentives to maintain incompatible standards across countries. The model is applied to the case of harmonizing Europe’s payment networks.

Suggested Citation

  • Leibbrandt, Gottfried, 2004. "Harmonizing Europe’s payment systems: an uphill battle?," Research Memorandum 020, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:umamer:2004020
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    File URL: https://unu-merit.nl/publications/rmpdf/2004/rm2004-020.pdf
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    References listed on IDEAS

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