Original scientific paper
The Economics of Credit Information
John-ren Chen
; University of Innsbruck, Innsbruck, Austria
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.
Keywords
credit information; credit information product; credit information market
Hrčak ID:
34395
URI
Publication date:
1.5.1999.
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