Issues and Prospects for Payments Systems Deregulation

  title={Issues and Prospects for Payments Systems Deregulation},
  author={Gautam Gowrisankaran and Ed Tyrus Green and T. Curtis Holmes and Mark S. Sniderman and John D. Hueter},
The check clearing and electronic payments systems market are regulated and dominated to various degrees by the Federal Reserve System. This article examines the theoretical and empirical implications of a potential deregulation of this market within the context of three broad effects: price discrimination, network externalities, and anticompetitive pricing. While these are all legitimate concerns, both the theoretical literature and empirical examples from other industries show that it is… CONTINUE READING