Non-price competition in credit card markets through bundling and bank level benefits
Guzin Akin (),
Gazi Kara () and
Levent Yildiran ()
MPRA Paper from University Library of Munich, Germany
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.
Keywords: Credit Cards; Monopolistic Competition; Product Differentiation; Bundling; Bank Pricing Behavior; Regulation (search for similar items in EconPapers)
JEL-codes: G2 D14 G21 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/17768/1/MPRA_paper_17768.pdf original version (application/pdf)
Working Paper: Non-Price Competition in Credit Card Markets Through Bundling and Bank Level Benefits (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:17768
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().