An Analysis of Reputation Restrictions of countries along the Belt and Road's Third Party Credit Reporting Agencies Based on Game Theory —Take China as An Example

DOI

10.2991/isbcd-18.2018.44How to use a DOI?

Keywords

Game theory; third-party credit reporting agencies; Belt and Road; Reputation Restrictions

Abstract

This paper analyzes the advantages of third-party credit reporting agencies over traditional credit bureaus and shows that third-party credit reporting agencies provide a convenient financing approach for SMEs among countries along the “The Belt and Road”. Taking China as an example, it introduces the development status of China's third-party credit reporting agencies, reveals the obstacles to the operation of third-party credit reporting agencies, and uses game theory to analyze the operational obstructions of reputation restrictions of third-party credit reporting agencies. When extra profits from illegal operations of agencies and cost of supervision by the official regulator are high, agencies have more incentive to take irregularities; when the punishment towards credit rating agency's violations is heavy, reputation loss of the agencies is enough, rewards for official regulators to successfully investigate violations of agencies are rich, the punishment for the official regulators failing to investigate the illegal operation of agencies and punishment for the official regulators failing to investigate the illegal operation of are heavy, credit reporting agencies have less incentive to take irregularities. After above analysis, measures of improving the third-party credit reporting agencies’ reputation constraint are put forward.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yaxian Lu
AU  - Wenbo Du
AU  - Hongmei Li
PY  - 2018/10
DA  - 2018/10
TI  - An Analysis of Reputation Restrictions of countries along the Belt and Road's Third Party Credit Reporting Agencies Based on Game Theory —Take China as An Example
BT  - Proceedings of the 3rd International Symposium on Asian B&R Conference on International Business Cooperation (ISBCD 2018)
PB  - Atlantis Press
SP  - 217
EP  - 221
SN  - 2352-5428
UR  - https://doi.org/10.2991/isbcd-18.2018.44
DO  - 10.2991/isbcd-18.2018.44
ID  - Lu2018/10
ER  -