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Uncertainty, Risk, and Trust: Russian and American Credit Card Markets Compared
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Uncertainty, Risk, and Trust: Russian and American Credit Card Markets Compared
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Journal Article
Uncertainty, Risk, and Trust: Russian and American Credit Card Markets Compared
2001
Overview
The strategies that Russian and American banks use to evaluate the creditworthiness of prospective credit cardholders are compared. Drawing on Knight's theory of risk and uncertainty, the authors argue that uncertainty, inherent in any credit transaction, can only be reduced to measurable risk if there are institutions that create stability over time, categorize events properly, and allow for verification and accumulation of information.
