Chinese Credit Card Market Pricing Theory And Empirical Study

This paper analyzes the current pricing situation in the Chinese credit card market. And make a detailed analysis and empirical research in the market adverse selection. Further through the establishment of model and looking for value-added services as a breakthrough point for the pricing strategy in the same time. Through the M Bank data for research, finding to the evidence to support the theoretical part, then give suggestion to the pricing model and precise positioning in the market.The first chapter has a detailed introduction for the overall market development, and conclusions of domestic and international knowledge of existing research. And elicit this paper's target of "made analysis from the theoretical and empirical on the pricing model for the domestic credit card market".The second chapter describes the global and the Chinese credit card market developments and challenges. By analysis of the credit card crisis in Taiwan, Hong Kong and Korea, then given some enlightenment in the future development of the domestic credit card market.The third chapter leads to the credit pricing theory "adverse selection", gives definition in detail, and through to establishing a market auction model to the actual experiment on the market in order to analysis the adverse selection relationship between banks and customers and the conclusion in the practical application.The fourth chapter has a detailed analysis of the pricing mechanism in the Chinese domestic credit card market. First to introduce the market structure and pricing of the basic elements in detail, then leads to the transformation cost, pricing strategy and the cost of payment instruments in China credit card market. At last, we have given detailed suggestions for improvement.The Fifth Chapter have established two models, one to statistics on credit ratings and the other one use to segments customer operation. Through the special channel, we have analysis to a large domestic commercial bank by using the actual data, and the models give effective results. Theoretical knowledge has be used in the actual operation of the credit card market, and have achieved certain results.