Markose, Sheri M and Loke, Yiing Jia (2003) Network Effects On Cash‐Card Substitution in Transactions and Low Interest Rate Regimes. The Economic Journal, 113 (487). pp. 456-476. DOI https://doi.org/10.1111/1468-0297.00124
Markose, Sheri M and Loke, Yiing Jia (2003) Network Effects On Cash‐Card Substitution in Transactions and Low Interest Rate Regimes. The Economic Journal, 113 (487). pp. 456-476. DOI https://doi.org/10.1111/1468-0297.00124
Markose, Sheri M and Loke, Yiing Jia (2003) Network Effects On Cash‐Card Substitution in Transactions and Low Interest Rate Regimes. The Economic Journal, 113 (487). pp. 456-476. DOI https://doi.org/10.1111/1468-0297.00124
Abstract
We develop a Nash game on the adoption of a new EFTPOS (Electronic Fund Transfer at Point of Sale) card payment media given cash is dispensed by a competitive ATM (Automated Teller Machine) network. Equilibrium conditions when cash and card use coexist entail a specific relationship between the card network coverage parameter (πk) and the proportion (ω) of cash financed expenditures. We derive a payments innovation technology constrained transactions demand for money which is highly interest rate sensitive in low interest rate regimes. Data on cash-card use in the UK (1990-97) is used to calibrate the model.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
| SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
| Depositing User: | Unnamed user with email elements@essex.ac.uk |
| Date Deposited: | 16 Aug 2012 13:52 |
| Last Modified: | 30 Oct 2024 17:39 |
| URI: | http://repository.essex.ac.uk/id/eprint/3733 |