Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Friday, February 3, 2012

The Morgan Stanley/Visa Saga: How does Economics help Address Double-Sided Markets

Posted by D. Daniel Sokol

Oliver Budzinski (University of Southern Denmark in Esbjerg, Department of Environmental and Business Economics) and Jesper Fredborg Huric Larsen (University of Southern Denmark in Esbjerg, Centre for Rural Research, Department of Environmental and Business Economics) describe The Morgan Stanley/Visa Saga: How does Economics help Address Double-Sided Markets.

ABSTRACT: In Morgan Stanley/Visa, the Commission compelled the later company to open its payment system to the former. In economics, the case raised questions dealt with under the ‘double-sided market’ theory. Apparently, that theory was not used by the Commission—which, as a result, failed to benefit from its insights regarding firms dealing with distinct customer groups such as merchants and final consumers in the case at issue.

http://lawprofessors.typepad.com/antitrustprof_blog/2012/02/the-morgan-stanleyvisa-saga-how-does-economics-help-address-double-sided-markets.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef0162fe56bbed970d

Listed below are links to weblogs that reference The Morgan Stanley/Visa Saga: How does Economics help Address Double-Sided Markets:

Comments

Post a comment