DEA and Bayesian Method in Evaluating the Efficiency of Credit Card Cardholder.

In this paper, a transformed DEA-CCR model is proposed to estimate the efficiency of each credit card cardholder. To demonstrate the validity of the proposed model, a monthly credit card usage dataset provided by a major credit card issue bank in Taiwan is used herein. The empirical result shows that the proposed model can not only identify each cardholder's efficiency level but also help the bank to improve its profitability by adjusting cardholders' credit limits and APR. Gender, position in a firm, education level, marriage status, and occupation have the most impact on bank's controllable variables. [ABSTRACT FROM AUTHOR]