Calem, Paul S.; Mester, Loretta J. - Financial Institutions Center, Wharton School of Business - 1994
During several episodes of declining or rising interest rate changes in the 1980s and 1990s, credit card rates changed little. At the same time, credit cards consistently earned higher returns than most other bank products. Ausenbel (1991) argues the reason is that the industry deviates from a...