Institute of Mathematics and Informatics Bulgarian Academy of Sciences
Serdica Mathematical Journal, Vol. 33, No 1, (2007), 35p-46p
The paper builds an oligopoly model of a debit card network.
It examines the competition between debit card issuers. We show that
there is an optimal pricing for the debit card network, which maximizes
all issuer’s revenues. The paper also shows that establishing a link between
debit card networks averages the costs provided that there is no growth in
the customer’s usage of the networks, resulting from the link.