POS access pricing problem in China - analyze from network economy view

This paper presents a model of a natural monopolistic transfer center providing one-way access to the merchants who could bypass the network with certain cost. We use this model to analyze the event of "merchants in Shenzhen reject bank cards", which is very important to development of POS system and bank transfer center in China. We find the efficient component pricing rule is propriety for this case. We also find the information management level of the merchants and the customer\´s habit of consumption are closely related to the decision of merchants.