Economic Issues Associated with Access to Electronic Payments Systems

Australian Business Law Review, 1999

27 Pages Posted: 4 Mar 2008

See all articles by Joshua S. Gans

Joshua S. Gans

University of Toronto - Rotman School of Management; NBER

Richard Scheelings

Victorian Bar

Abstract

This paper provides an economic analysis of the competition issues arising from access to the electronic payments system. Such concerns were raised in the Wallis Report and in particular in an ACCC Draft Determination on the Australian Payments Clearing Association (1997). We draw on existing US economic literature to explain the theory of network effects, which has been used there for analysing payment systems (and other networks, especially in information technology markets). Three levels of analysis of access to the electronic payments system are distinguished - access to settlement, voluntary industry associations, and payment system facilities. Throughout the article the ACCC Draft Determination is discussed and a critique provided.

Suggested Citation

Gans, Joshua S. and Scheelings, Richard, Economic Issues Associated with Access to Electronic Payments Systems. Australian Business Law Review, 1999. Available at SSRN: https://ssrn.com/abstract=1100903

Joshua S. Gans (Contact Author)

University of Toronto - Rotman School of Management ( email )

Canada

HOME PAGE: http://www.joshuagans.com

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Richard Scheelings

Victorian Bar ( email )

C/- Clerk G
Melbourne, Victoria 3000
Australia

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