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The Economics of Credit Information

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  • John-ren Chen

    (University of Innsbruck)

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    Abstract

    The credit sale has been a widely used form of transaction. Credit sale can reduce transaction cost but induce credit risk because of default credit. To avoid credit risk a firm needs information about the payment behaviour and solvency situation of his debtor. A credit information agency is a professional supplier of credit information. In this paper an outline of economics of credit information such as market for credit information, production, its cost and welfare effects are discussed.

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    Bibliographic Info

    Article provided by Faculty of Economics and Business, University of Zagreb in its journal Zagreb International Review of Economics and Business.

    Volume (Year): 2 (1999)
    Issue (Month): 1 (May)
    Pages: 63-82

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    Handle: RePEc:zag:zirebs:v:2:y:1999:i:1:p:63-82

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    Related research

    Keywords: credit information; credit information product; credit information market;

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