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The Economics of Credit Information

Author

Listed:
  • John-ren Chen

    (University of Innsbruck)

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.

Suggested Citation

  • John-ren Chen, 1999. "The Economics of Credit Information," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 2(1), pages 63-82, May.
    • Handle: RePEc:zag:zirebs:v:2:y:1999:i:1:p:63-82
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    More about this item

    Keywords

    credit information; credit information product; credit information market;
    All these keywords.

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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