Collusion In Payment Processing Market With Differentiated Goods

• Escobar Elexpuru, Gonzalo ^[1] ; Valdés de la Fuente, Iván ^[2]
  1. [1] Universidad Andrés Bello

     Universidad Andrés Bello

     Santiago, Chile

     
  2. [2] Universidad de Tarapacá

     Universidad de Tarapacá

     Arica, Chile

     
• Localización: Estudios de economía aplicada, ISSN 1133-3197, ISSN-e 1697-5731, Vol. 42, Nº 3, 2024 (Ejemplar dedicado a: New challenges for economy policy: re-globalization vs de-globalization)
• Idioma: inglés
• Enlaces
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• Resumen

  • This research shows the effects of the entry of new players in the market of the acquisition and processing of credit and debit cards depending on the Chilean transaction market. Considering an oligopolistic structure and firms competing with Bertrand, there may be incentives for collusion in each of these markets by the entry of firms that can only compete in one of these markets. In addition, although firms always prefer a collusion scenario, there are incentives to break the collusive agreement and therefore whether this situation continues over time will only depend on the degree of differentiation of the product.