Public vs. Private Payment Platforms: Market Impacts and Optimal Policy

2026

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This paper analyzes the competition between public and private payment platforms, examining market impacts and optimal policy design.

* Examines the pricing strategies of a welfare-maximizing public platform versus a profit-maximizing private platform in a two-sided market.
* Investigates the welfare and distributional effects of public platform entry, including impacts on consumers and merchants.
* Analyzes the implications of common policy mandates like zero consumer fees and cost recovery for public platforms.

Tags: Payment platforms, Public vs. private, Competition, Optimal policy, Market impacts

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