01769cas a2200265 a 4500 AALejournalIMF019095 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484399620 1018-5941 BD-DhAAL BD-DhAAL Li, Bin Grace. Two-Sided Market, R and D and Payments System Evolution / Bin Grace Li, James McAndrews, Zhu Wang. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (48 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students It takes many years for more efficient electronic payments to be widely used, and the fees that merchants (consumers) pay for using those services are increasing (decreasing) over time. We address these puzzles by studying payments system evolution with a dynamic model in a twosided market setting. We calibrate the model to the U.S. payment card data, and conduct welfare and policy analysis. Our analysis shows that the market power of electronic payment networks plays important roles in explaining the slow adoption and asymmetric price changes, and the welfare impact of regulations may vary significantly through the endogenous R and D channel. Mode of access: Internet McAndrews, James. Wang, Zhu. IMF Working Papers; Working Paper ; No. 2019/057 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/057/001.2019.issue-057-en.xml IMF e-Library