Tuesday, September 21, 2010

Bank Fees

Recently I have been talking about two-part pricing (tariffs) in my economics class. I have given a number of examples of two-part pricing, and here is one more - banks and credit/debit card fees. The article focuses on how banks are trying to keep the credit/debit card fees given changes in the laws covering how banks can charge fees on these financial services. How this relates to two part pricing is that one part is the charge of the usage of the card and the other is the charge for access to the card, which would fit in the theory presented. Of course, there are other fees that are discussed in the article, but this is one way of thinking about the application of two part pricing.

No comments: