Cross - Network Externality Measurement Based On Attribution Curve

Bankcard industry has developed quickly in the past30years in china, especially after the establishment of the China Union Pay in2002. However, the bankcard industry, especially credit card payment market has also exposed some problems in the high-speed development, which is due to the two-sided market characteristics of bankcard industry has brought challenges to policy makers. Therefore, using the framework of the two-sided market theory, this paper test the existence of cross-group network effects of China’s bank card industry through empirical research methods, and then this paper identified the strength of the based on the testing result. I hope this paper can make some relevant policy recommendations to the development of China’s banking card industry through research conclusions.The main conclusions of this paper are as follows:(1) China’s bankcard industry has a cross-group network externalities;(2) cross-group network effects of acquiring market to card issuing market is stronger than the cross-group network effect of the card issuing market to acquiring market;(3) the market concentration of card issuing market has a significant impact to both card issuing market and acquiring market;(4) reduce the credit card fee is conducive to expend the size of the acquiring market.