Research On Competition Of Credit Card Market Based On Bilateral Matching Theory

Credit card business is one of the most profitable businesses in commercial banks. So,Credit card business becomes the focus of commercial banks’ competition. Forcommercial banks, the market share of credit card is very significant because credit cardbusiness depends on its size. For commercial banks, development of new customers isimportant, but the maintenance of old customers also plays a very important role to itsmarket share. Currently, the credit card market exists a major problem,that is lessdfficienct matching,which will lead waste of social resources,resulting in the loss ofsocial welfare.So we need to establish a new matching pattern, design and stable bilateralmatching market mechanisms, and to analyze the stability of matching strategy tofundamentally solving competition issues of the credit card market.Firstly, this paper makes a more detailed overview to bilateral matching theory andthe research of credit cards competition;on the basis of literature review, analisis thebilateral matching mechanism to compete with credit card in eheoretical.Then,usingcluster analysis and multi-granularity linguistic assessment information on bilateralmatching method analysis the stable matching of consumers and the issuing bank ofChina，s credit card market.And using Commercial Bank of China and China MerchantsBank for example, explains stable bilateral matching plays an important role on thecompetition card.On this basis, this chapter proposes several suggestions for thecompetition of credit card. Compared with previous studies, the main innovation of thispaper are: combined the bilateral matching theory and commercial bank credit cardcompetition, from the perspective of bilateral matches to study the problem of credit cardcompetition, and the study contains both supply and demand, which is a useful extensionto explore and try to competing theories and the credit card industry economics-relatedtheory now.