Exploring the Dual-Card Crisis Under the Information Asymmetry
DOI:
https://doi.org/10.33423/jabe.v27i1.7494Keywords:
business, economics, dual-card crisis, information asymmetry, adverse selections, moral hazardsAbstract
The article aimed to explore Taiwan’s dual-card crisis under the information asymmetry. Different from South Korea or Hong Kong, the card debts in Taiwan were derived from the credit cards and the cash cards. To achieve the goal, the article constructed the information asymmetry model combined with the adverse selections and the moral hazards. The results showed that the adverse selections and the moral hazards did exist in the dual-card market which led to the dual-card crisis. To cope with the dual-card crisis, the conclusion implied that the card debts in the dual-card market needed to be solved at the same time.
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