Recent activities of Chakra Advisors LLC are covered here.
Payment Instrument Choice: The Case of Prepaid Cards
In this article, Chakravorti and Lubasi conclude that prepaid applications potentially provide a more cost-effective means to transfer funds when: 1) recipients of funds do not have transactions accounts; 2) disbursers of funds do not...
The Payments topic covers research in the area of all types of payments from consumer, business, government, interbank, cross border, and others.
Platform Competition In Two-Sided Markets: The Case Of Payment Networks
Chakravorti and Roson construct a model to study competing payment networks, where networks offer differentiated products in terms of benefits to consumers and merchants. We study market equilibria for a variety of market structures: duopolistic...
Policy and Regulation
The Policy and Regulation topic covers existing and future policy and regulation of financial markets.
Pricing in Retail Payment Systems: A Public Policy Perspective on Pricing of Payment Cards
The provision of retail payment services is complex with many participants engaging in a series of interrelated bilateral transactions and subject to large economies of scale and scope along with strong adoption, usage and network...
The Product Analyses topic covers research in new financial products.
Professors Carbo and Rodriguez along with Bob Chakravorti Advising World Bank
Professors Santiago Carbo Valverde and Francisco Rodriguez Fernandez, members of Chakra Advisors’ Advisory Board, and Bob are advising the World Bank Group. They are part of a team of consultants studying how incentives impact the...
Regulating Retail Payment Systems: The Case of Payment Cards
Bolt and Chakravorti discuss different types of market interventions by public authorities in retail payment markets. They concentrate on three types of market interventions. First, they analyze the impact of removing pricing restrictions placed on...
Our innovative research uses cutting-edge empirical tools that informs strategic business decisions, shapes sound public policy, and enables greater financial inclusion. Our team's research has appeared in well-known industry, central bank, academic outlets, and cited...
Retail Payment Economics: Theory and Practice
In his presentation to Bank of Mexico economists and payment experts, Chakravorti presented an update of economic models that consider various forms of regulation.
Santiago Carbo Valverde, PhD
Santiago Carbo Valverde is a Professor of Economics at the University of Granada (Spain).
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Short Topic Briefs
Chakra Advisors LLC provides topical analysis on issues facing financial markets. Target audiences include industry leaders, central banks, academics, and policymakers.
Small Business in the Digital Age: Recommendations for Recovery and Resilience
Greater digitization of commerce has brought enormous benefits to businesses and consumers. By using digital payment capabilities and online marketplaces, many micro, small, and medium enterprises (MSMEs) are more able to compete with larger firms...
Surcharging and Honor-All-Cards Rules
Bob Chakravorti discusses surcharging and honor-all-cards rules for payment cards. Generally, merchants charge the same price regardless of the type of payment instrument used to make purchases. In many jurisdictions, merchants are not allowed to...
The Economics of Retail Payments: Theory and Practice
In his lecture as part of a broader course on Effective Oversight of Payment and Settlement Systems: Maintaining Financial Plumbing edited by Charles Kahn, Chakravorti describes the underlying economics of retail payments including substitution of...
The Evolving Payments Landscape And Its Implications For Monetary Policy
The key questions that Chakravorti asks in this book chapter are: (1) How is the payment system evolving? (2) What are the economic forces driving the adoption of new payment instruments? (3) Would recent developments...
The Future of Cryptotokens
In this chapter, the authors study how cryptotoken issuance, also referred to as initial coin offerings and security token offerings, may disrupt funding markets such as venture capital, crowdfunding, and private equity. The authors discuss...
The Future of Cryptotokens (Presentation)
Sujit Chakravorti presented his joint paper with Joey Biasi, titled "The Future of Cryptotokens," at the World Banking and Finance Symposium in New Delhi in December 2019.
The Impact of FinTech and Big Tech Firms on the Way We Pay
In this keynote presentation, Bob Chakravorti discusses how FinTech and big tech firms are increasing competition in the payments space. Entry into payments, often allows these non-bank providers the ability to offer loans to underserved...
The Role of Interchange Fees in Two-Sided Markets: An Empirical Investigation on Payment Cards
Carbó, Chakravorti, and Rodriguez study the impact of lowering interchange fees on consumer and merchant adoption and usage along with bank revenues during a ten-year period in Spain using bank-level data. Using cutting-edge econometric techniques...
The Societal Benefits of Large Banks
Baumann, Chakravorti, and Shaaya identify and summarize the recent academic and industry literature on the benefits of large banks from the perspective of economies of scale and scope along with the benefits of a large...
Theory of Credit Card Networks: A Survey of the Literature
Credit cards provide benefits to consumers and merchants not provided by other payment instruments as evidenced by their explosive growth in the number and value of transactions over the last 20 years. Recently, credit card...
Chakra Advisors LLC leads workshops on key issues facing the financial services industry geared for decision makers in the public and private sectors.