Table 2 Variable definitions and...

Table 2

Variable definitions and calculation methods

Variables	Definition	Calculation method
$∆$ CTV_i,t	Rate of change in the card transaction volume	Quarterly difference in the log of card (credit card + debit card + prepaid card) transaction volume as the dependent variable
$∆$ MS_i,t	Rate of change in the market share	Quarterly difference in the log of market share (card transaction volume of individual credit card companies ÷ total card transaction volume of seven credit card companies) as the dependent variable
$∆$ RPR_i,t	Rate of change in the relative price ratio	As an explanatory variable representing the price structure of two-sided markets, this variable is given by the quarterly difference in the log of the value obtained by dividing the merchant discount rate by the annual cardholder membership fee rate
$∆$ TPR_i,t	Rate of change in the total price rate	As a control variable that represents the price level in two-sided markets, this variable is given by the quarterly difference in the log of the ratio of the sum of merchant discount revenue and annual cardholder membership fee revenue (i.e. merchant discount rate + annual cardholder membership fee rate) divided by card transaction volume
$∆$ CPI_t	Rate of change in the customer price index	Quarterly difference in the log of the customer price index announced by Statistics Korea
$∆$ CCSI_t	Rate of change in the consumer composite sentiment index	Quarterly difference in the log of the quarterly average of the monthly data of the consumer composite sentiment index announced by the Bank of Korea
$∆$ GDP_t	Rate of change in the real gross domestic product (GDP)	Rate of change from the previous quarter of real GDP, which presents the status of the economy
$∆$ BADLR_i,t	Rate of change in the bad loan ratio	Quarterly difference in the log of the ratio of bad loans to total loans
$∆$ OE_i,t	Rate of change in other expenses, including marketing expenses	Quarterly difference in the log of other card expenses (marketing expenses, card member recruitment expenses, affiliate expenses, card issuance expenses, etc.)
$∆$ PCS_i,t	Rate of change in the prepaid card sales	As a control variable to control the size of the increase in credit card transaction volume, this variable represents the quarterly difference in the log of the amount paid in advance by the credit card company to the merchant for the cardholder's card usage amount
$∆$ CCR_i,t	Rate of change in the check card ratio	As a control variable to control changes in the merchant discount rate due to changes in the check card usage ratio, this variable represents the quarterly difference in the log of the check card usage ratio ((check(debit) card transaction volume ÷ card transaction volume)

Variables	Definition	Calculation method
$∆$ CTV_i,t	Rate of change in the card transaction volume	Quarterly difference in the log of card (credit card + debit card + prepaid card) transaction volume as the dependent variable
$∆$ MS_i,t	Rate of change in the market share	Quarterly difference in the log of market share (card transaction volume of individual credit card companies ÷ total card transaction volume of seven credit card companies) as the dependent variable
$∆$ RPR_i,t	Rate of change in the relative price ratio	As an explanatory variable representing the price structure of two-sided markets, this variable is given by the quarterly difference in the log of the value obtained by dividing the merchant discount rate by the annual cardholder membership fee rate
$∆$ TPR_i,t	Rate of change in the total price rate	As a control variable that represents the price level in two-sided markets, this variable is given by the quarterly difference in the log of the ratio of the sum of merchant discount revenue and annual cardholder membership fee revenue (i.e. merchant discount rate + annual cardholder membership fee rate) divided by card transaction volume
$∆$ CPI_t	Rate of change in the customer price index	Quarterly difference in the log of the customer price index announced by Statistics Korea
$∆$ CCSI_t	Rate of change in the consumer composite sentiment index	Quarterly difference in the log of the quarterly average of the monthly data of the consumer composite sentiment index announced by the Bank of Korea
$∆$ GDP_t	Rate of change in the real gross domestic product (GDP)	Rate of change from the previous quarter of real GDP, which presents the status of the economy
$∆$ BADLR_i,t	Rate of change in the bad loan ratio	Quarterly difference in the log of the ratio of bad loans to total loans
$∆$ OE_i,t	Rate of change in other expenses, including marketing expenses	Quarterly difference in the log of other card expenses (marketing expenses, card member recruitment expenses, affiliate expenses, card issuance expenses, etc.)
$∆$ PCS_i,t	Rate of change in the prepaid card sales	As a control variable to control the size of the increase in credit card transaction volume, this variable represents the quarterly difference in the log of the amount paid in advance by the credit card company to the merchant for the cardholder's card usage amount
$∆$ CCR_i,t	Rate of change in the check card ratio	As a control variable to control changes in the merchant discount rate due to changes in the check card usage ratio, this variable represents the quarterly difference in the log of the check card usage ratio ((check(debit) card transaction volume ÷ card transaction volume)

Note(s): This table presents the definitions of the variables used in this study and describes how they are calculated. The merchant discount rate is obtained by dividing the merchant discount revenue by card transaction volume, while the cardholder annual membership fee rate is obtained by dividing the cardholder annual membership fee revenue by card transaction volume. These are the standardized prices for card transaction volume

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