2008

• Spin-offs: Theory and Evidence from the Early U.S. Automobile Industry

  By Luis Cabral and Zhu Wang
  This paper provides a "passive learning" model of firm entry by spin-off and predicts a high correlation between spin-offs and parent exit. The theoretical findings are tested and confirmed on a unique data set of the U.S. automobile industry.

• Product Innovation and Network Survival in the U.S. ATM and Debit Card Network Industry

  By Fumiko Hayashi and Zhu Wang
  This paper studies product innovation and network survival in the U.S. ATM/debit card industry.

• Why Do Card Issuers Charge Proportional Fees?

  By Oz Shy and Zhu Wang
  This paper explains why payment card companies charge consumers and merchants fees which are proportional to the transaction values instead of charging a fixed per-transaction fee.

• The Economics of Two-Sided Payment Card Markets: Pricing, Adoption and Usage

  By James McAndrews and Zhu Wang
  This paper provides a new theory to explain pricing, adoption and usage in two-sided payment card markets.

• The Economics of Payment Card Fee Structure: Policy Considerations of Payment Card Rewards

  By Fumiko Hayashi
  First in a series of three papers on payment card fees: What is the optimal balance between merchant fees and cardholder rewards?

• The Economics of Payment Card Fee Structure: What Drives Payment Card Rewards

  By Fumiko Hayashi
  Second in a series of three papers on payment card fees: What market forces result in cardholder rewards?

• The Economics of Payment Card Fee Structure: What is the Optimal Balance Between Merchant Fee and Payment Card Rewards?

  By Fumiko Hayashi
  Third in a series of three papers on payment card fees: What public policy options might improve the efficiency and welfare distribution in the U.S. retail payment systems?