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November/December 1995, 
Vol. 77, No. 6
Posted 1995-11-01

Antitrust and Payment Technologies

by Dennis W. Carlton and Alan S. Frankel

The authors focus largely on a court case involving Visa and Discover Card. Visa denied an application for membership by a depository institution owned by Discover Card, and Discover Card sued Visa. The authors’ analysis of this case includes evidence that the entry of aggressive competitors into the Visa credit card network made the credit card industry more competitive.