Attrition and preemption in credit/debit cards incentives: models and experiments

Incentives might guide marketing actions according to bank politics and Basel Core Principles which include partner\´s behavior. These patterns may optimize a utility function, represent simple preferences, or may be irrational. An incitement to cooperate "using a credit/debit card product frequently", produces a surplus to be distributed between diners club international (Principal), partners (agents) and merchants (establishments). The author uses the bimatrix chicken game as a paradigm of incitement to cooperate. The net current value represents the utility function. The author determines the microeconomic characteristics of the partner\´s behavior which include: risk aversion or risk loving. The individual preferences related to risk will allow us to make decisions based on when, how and to whom the incentives are given.