Credit Card Industry Welfare Distribution
This is a U.S. news story, published by The Review of Economic Studies.
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oligopolistic lendersThe Review of Economic Studies
•Who Bears the Welfare Costs of Monopoly? The Case of the Credit Card Industry - The Review of Economic Studies
79% Informative
We measure the distribution of welfare losses from non-competitive behavior in the U.S. credit card industry during the 1970s and 1980s .
The transition from monopoly to oligopolistic competition yields welfare gains equivalent to a one -time transfer worth $ 3,600 (in 2016 dollars ) for the bottom decile of earners.
Low-income households benefit more since they rely disproportionately on credit to smooth consumption.
Greater competition explains rising bankruptcies, chargeoffs and credit to income ratios.
VR Score
91
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98
Neutral language
50
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informal
Language
English
Language complexity
81
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not offensive
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not hateful
Attention-grabbing headline
not detected
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not detected
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long-living
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