00000cam 2200000zi 4500 9.962253 CaOODSP 20260427122344 m o d f cr cn||||||||| 260427e20260310onc ob f000 0 eng d CaOODSP eng rda CaOODSP FB3-5/2026-10E-PDF Liu, Youming, author. Public vs. private payment platforms : market impacts and optimal policy / Youming Liu, Edona Reshidi, Francisco Rivadeneyra. [Ottawa] : Bank of Canada = Banque du Canada, March 10, 2026. ©2026 1 online resource (45 pages). text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2026-10 Cover title. Includes bibliographical references (pages 27-28). "We study competition between a welfare-maximizing public platform and a profit maximizing private platform in a two-sided payment market. We characterize the public platform’s optimal pricing and show that it balances the benefits of increased competition against the welfare costs of network fragmentation. While introducinga public platform generally raises aggregate welfare and financial inclusion, the competing private platform may respond by raising its fees, disadvantaging merchants that continue to accept payments from the private platform. Finally, we show that cost-recovery and zero-fee mandates constrain public pricing, making welfare improvements uncertain and conditional on network effects, user switching behavior, and the degree of platform differentiation"--Abstract. Payment Econometric models. Paiement Modèles économétriques. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 1701-9397 ; 2026-10. (CaOODSP)9.806221 PDF 684 KB https://publications.gc.ca/collections/collection_2026/banque-bank-canada/FB3-5-2026-10-eng.pdf