The U.S. Credit Card Industry

Kellogg School of Management Cases

ISSN: 2474-6568

Publication date: 20 January 2017


To examine psychological biases that are forces which can shape industry performance. Evidence shows that consumers' attitude toward credit is prone to “irrational” failure to exercise self-control and the inability to fully anticipate future borrowing behavior. A simple model is provided showing that these peculiarities in consumer psychology enable an industry, with otherwise few inherent drivers of superior profitability, to achieve superior performance. Ethical and regulatory issues are then debated.



Al-Najjar, N. and Malik, A. (2017), "The U.S. Credit Card Industry", Kellogg School of Management Cases.

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