Cross-network externality analysis of the price structure on the credit card market in China
by Ning Ding
International Journal of Services and Standards (IJSS), Vol. 9, No. 2/3/4, 2014

Abstract: The Chinese credit card market has entered into a rapid development stage with the increase of residential income levels, advanced improvement of e-payment systems as well as policy perception on domestic demand expansion. There has been exponential growth in the credit card market. However, there are many disputes on commissions among the Point of Sale (POS) merchants regarding the extra charges arising from using the cards. Thus, the rationality of its market price structure is doubted. The paper adopts a price structure model for the credit card market under imperfect competition circumstances based on two-sided market theory. The paper produces an empirical analysis on the cross-network externality of the credit card market during the period of 1995-2013 and concludes that the reason why there are extra charges for using the cards is not the problem of price structure. Finally, possible suggestions are mentioned to improve the credit card markets and reduce financial risks.

Online publication date: Thu, 05-Feb-2015

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Services and Standards (IJSS):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email