Agent-based modelling of credit card promotions

What is it about?

Deciding the details of interest-free promotions on credit cards is challenging for credit lenders, as they have to take many different factors into account and predicting the consequences of pricing decisions is often not straightforward. We develop a model that focuses on simulating customer and lender behaviour at a low level, with an approach called agent-based modelling. This enables the simulation of the results of different interest-free promotions under a range of scenarios, with the effects on consumers and lenders analysed.

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