The Economics of Credit Information
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.
Volume (Year): 2 (1999)
Issue (Month): 1 (May)
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