In the co-opetition model of credit cards described by Evans and Schmalensee, which of the following are ways that banks belonging to Visa could compete with each other? 1. Charge a lower interest rate on unpaid balances so consumers will choose their cards over those of other member banks. 2. Charge a lower annual fee so consumers will choose their cards over those of other member banks. 3. Charge a lower interchange fee so merchants will accept their cards rather than those of other member banks.

Group of answer choices

1 and 2

1, 2, and 3

2 and 3

1 and 3