| Bankcard industry represents two important characteristics during its rapid development. One characteristic is the strong network externalities, the utility that a consumer derives from using credit cards increases with the number of firms who accept the credit cards. The other characteristic is that a great deal of professional organizations such sever the consumer and firms associated with credit cards. Chinese bankcard industry has formed a comparative scale basing on ten more years development. From 2002, the government give more and more support to the bankcard industry, for example the establishment of Chinaunionpay Co. Compar ing with the rapid development of bankcard industry, there is a lack of the relevant theory research, because of its short history. In this paper, we applies the principle of network economics to analysis the development of Chinese Bankcard Industry. We expound the network economics attribute of bankcard industry and also provide the theory base for the strategic programming of Chinese Bankcard Industry.There are six parts. The first part is the introduction. The second part is the summary of the theories of the network economics and the foreign research of bankcard industry. The third part focuses on analyzing the actual state of Chinese Bankcard Industry development. The fourth part is the core of this paper. In this part, we develop a simple model, basing on Metcalfe rule, to verify the network effect of bank which emit credit cards, test the relevance of the number of credit cards and the transaction of credit cards. The relation of the value of credit cards transaction and the certified merchant is also tested here. Finally, we form a conclusion that Chinese Bankcard Industry represents strong network economics character, so the industry should take a joint-development way in commercial competition. In the fifth part we give advice to the development of Chinese Bankcard Industry. |
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