Perfect surcharging and the tourist test interchange fee

B-Tier
Journal: Journal of Banking & Finance
Year: 2011
Volume: 35
Issue: 10
Pages: 2544-2546

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Two widely discussed pricing benchmarks in the literature on payment card markets are the "tourist test" interchange fee (Rochet and Tirole, forthcoming), which internalizes usage externalities in payment card markets, and "perfect surcharging" by merchants (Rochet and Tirole, 2002). This paper shows that these benchmarks are allocatively equivalent. Implications for the regulatory treatment of interchange fees and no-surcharge rules are discussed.

Technical Details

RePEc Handle
repec:eee:jbfina:v:35:y:2011:i:10:p:2544-2546
Journal Field
Finance
Author Count
1
Added to Database
2026-01-29