Akin, Guzin Gulsun and Aysan, Ahmet Faruk and Kara, Gazi Ishak and Yildiran, Levent (2008): Non-price competition in credit card markets through bundling and bank level benefits.
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The attempts to explain the high and sticky credit card rates have given rise to a vast literature on credit card markets. This paper endeavors to explain the rates in the Turkish market using measures of non-price competition. In this market, issuers compete monopolistically by differentiating their credit card products. The fact that credit cards and all other banking services are perceived as a bundle by consumers allows banks to deploy also bank level characteristics to differentiate their credit cards. Thus, credit card rates are expected to be affected by the features and service quality of banks. Panel data estimations also control for various costs associated with credit card lending. The results show significant and robust effects of the non-price competition variables on credit card rates.
|Item Type:||MPRA Paper|
|Original Title:||Non-price competition in credit card markets through bundling and bank level benefits|
|English Title:||Non-price competition in credit card markets through bundling and bank level benefits|
|Keywords:||Credit Cards, Monopolistic Competition, Product Differentiation, Bundling, Bank Pricing Behavior, Regulation|
|Subjects:||G - Financial Economics > G2 - Financial Institutions and Services
D - Microeconomics > D1 - Household Behavior and Family Economics > D14 - Household Saving; Personal Finance
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages
|Depositing User:||Ahmet Faruk Aysan|
|Date Deposited:||10. Oct 2009 06:05|
|Last Modified:||13. Feb 2013 20:37|
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