Abstract
Czech banking market is specific for its high percentage of earnings from bank charges as a total percentage of bank earnings. This article is focused on the problems associated with bargaining between bank clients and banking institutions in the Czech Republic. With most banks in the market, bank clients must pay monthly charges in order to maintain their bank accounts. The article describes the interaction between the bank and the client from the game theory perspective. Both bargaining parties have different goals and they encounter each other during the bargaining process about the price of bank charges. The game theory defines the pay-off function, the decision tree and the point of conflict. The result is a model of this interaction that appears as an extensive form game. The actual amount of charges that result from the bargaining is regularly ascertained by a national survey using the Client Index (Klientský index) for current accounts in the Czech Republic. The Client Index represents the quantification of average costs of maintaining a current account of individual respondents based on the monitoring of specific retail banking products and services according to fee schedules of individual banks and the behaviour of individual bank clients. The approximation of the value of this Client Index was used for the proposal of pay-off function in the model. The paper also deals with general theoretical bases of bargaining, particularly it focused on bargaining with a client. The cooperative and non-cooperative strategy towards the client are described. The reasons for bargaining with existing bank clients are presented as well. Finally the article also summarizes both the goals of clients and banks during bargaining.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
Poplatky, B.: Analýza MPO (2012). http://www.bankovnipoplatky.com/analyza-mpo-porovnani-ceskych-bank-s-materskymi-bankami-17857.html. Accessed 9 Jan 2016
Bankovnictví: Elektronic newsletter of Journal Bankovnictví No. 04/ 27. 1. 2015. http://www.bankovnictvionline.cz/sites/de-fault/files/bank_2015_04_0.pdf. Accessed 30 Oct 2015
Belás, J., Lenka Gabčová, L.: The relationship among customer satisfaction, loyalty and financial performance of commercial banks. E&M Ekonomie a Manag. 19(1), 132–147 (2016). https://doi.org/10.15240/tul/001/2016-1-010
Belás, J., Chochoľáková, A., Gabčová, L.: Satisfaction and loyalty of banking customers a gender approach. Econ. Sociol. 8(1), 176–188 (2015). https://doi.org/10.14254/2071-789X.2015/8-1/14
Bilan, Y.: Sustainable development of a company: building of new level relationship with the consumers of XXI century. Amfiteatru Econ. J. 15(7), 687–701 (2013)
Brualdi, R.A.: Introductory Combinatorics. Prentice Hall, New Jersey (2010). ISBN 0-13-602040-2
Calculator of bank fees (2015). http://www.bankovnipoplatky.com/kalkulator.html. Accessed 31 Dec 2015
Carmichel, F.: A Guide to Game Theory. Prentice Hall, Harlow (2005). ISBN 0-273- 68496-5
Capgemini: World Retail Banking Report 2015 (2015). https://www.worldretailbankingreport.com/. Accessed 31 Dec 2015
CNB: Czech National Bank, Financial Sector (2015). https://www.cnb.cz/miranda2/export/sites/www.cnb.cz/cs/financni_stabil-ita/zpravy_fs/fs_2014-2015/fs_2014-2015_financni_sektor.pdf. Accessed 11 Dec 2015
CNB: Czech National Bank, Jak jsou na tom banky? (2015a). https://www.cnb.cz/cs/faq/jak_jsou_na_tom_banky.html. Accessed 11 Dec 2015
Cohen, H.: Umění vyjednávat: jak dostat to, co chceš, 1. vydání Praha Pragma (1998). ISBN 80-7205-613-1
Draessler, J., Soukal, I., Hedvičáková, M.: Shluková analýza poptávkové strany trhu základních bankovních služeb. E+M Ekonomie a Manag. 14(4), 102–114 (2011). ISSN 1212-3609
Fatima, S., Rahwan, I.: Negotiation and bargaining. In: Multiagent Systems, p. 143 (2013)
Fisher, R.: Jak dosáhnout souhlasu: zásady úspěšného vyjednávání, 2nd vyd, 173 s. Management Press, Praha (2004). Poradce pro praxi. ISBN 80-726-1100-3
Fisher, R., Ury, W., Patton, B.: Dohoda jistá: zásady úspěšného vyjednávání, 1st vyd, 174 s. Management Press, Praha (1994). Přeložil Aleš Lisa. ISBN 80-85603-48-9
Gintis, H.: Game Theory Evolving: A Problem-Centered Introduction to Modeling Strategic Interaction. Princeton University Press, New Jersey (2009). ISBN 978-0-691-14050-6
Government of the Czech Republic: Usnesení (2005). http://www.psfv.cz/assets/cs/media/Usneseni_2005-1594_2005-12_O-zlepseni-podminek-v-bankovnim-sektoru.pdf. Accessed 9 Oct 2014
Hedvicakova, M.: Key study of bank accounts for young people with using multi-criteria optimization and fuzzy analysis. Appl. Econ. 49(36), 3599–3610 (2017). https://doi.org/10.1080/00036846.2016.1265073
Holá, L.: Mediace v teorii a praxi, 272 s. Grada Publishing, Praha (2011). ISBN 978-80-247-3134-6
Hovorka, J.: Jak velké jsou banky v Česku? Nový žebříček klientů i vkladů (2015). http://zpravy.aktualne.cz/finance/jak-velke-jsou-banky-v-cesku-novy-zebricek-klientu-i-vkladu/r~c6b9b70efe0211e499590025900fea04/. Accessed 30 Oct 2015
Chavan, J., Ahmad, F.: Factors affecting on customer satisfaction in retail banking: an empirical study. Int. J. Bus. Manag. Invention 2(1), 55–62 (2013)
Keisidou, E., Lazaros, S., Maditions, D.I., Thalassinos, E.I.: Customer satisfaction, loyalty and financial performance: a holistic approach of the Greek banking sector. Int. J. Bank Mark. 31(4), 259–288 (2013). https://doi.org/10.1108/IJBM-11-2012-0114
Munari, L., Lelasi, F., Bajetta, L.: Customer satisfaction management in Italian banks. Qual. Res. Financ. Markets 5(2), 139–160 (2013). https://doi.org/10.1108/QRFM-11-2011-0028
Odell, J.: Negotiation and bargaining. In: Handbook of International Relations, vol. 2 (2011)
Plamínek, J.: Řešení konfliktů a umění rozhodovat. 1st Vyd, 198 s. Argo, Praha (1994). ISBN 8085794144
Plamínek, J.: Synergický management: vedení, spolupráce a konflikty lidí ve firmách a týmech, 328 s. Argo, Praha (2000). ISBN 80-7203-258-5
Soukal, I., Hedvičáková, M.: Klientsky index – metodika (2010). http://www.bankovnipoplatky.com/klientsky-index—metodika-12507.html. Accessed 19 Oct 2015
Tennant, D., Sutherland, R.: What types of banks profit most from fees charged? A cross-country examination of bank-specific and country-level determinants. J. Bank. Financ. 49, 178–190 (2014). https://doi.org/10.1016/j.jbankfin.2014.08.023
Vega-Redondo, F.: Economics and the Theory of Games. Cambridge University Press, Cambridge (2003). 978-0-521-77590-8
Vodova, P.: Liquid assets in banking: what matters in the visegrad countries? E&M Ekonomie a Manag. 16(3), 113–129 (2013)
Hedvicakova, M.: Unemployment and effects of the first work experience of university graduates on their idea of a job. Appl. Econ. 50(31), 3357–3363 (2018). https://doi.org/10.1080/00036846.2017.1420895
Soukal, I., Draessler, J.: On the need for the next RCBS regulation. In: Soliman, K.S. (ed.) Proceedings of the 25th International Business Information Management Association Conference - Innovation Vision 2020: From Regional Development Sustainability to Global Economic Growth, IBIMA 2015, pp. 679–687 (2015)
Bank charges calculator. http://www.bankov-nipoplatky.com/kalkulator.html. Accessed 10 Feb 2018
Acknowledgement
This paper is supported by specific project No. 2103 (2018) “Investment evaluation within concept Industry 4.0” at Faculty of Informatics and Management, University of Hradec Kralove, Czech Republic. In addition, the authors thank Martin Kral for his help with the project.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this paper
Cite this paper
Hedvicakova, M., Prazak, P. (2019). Bargaining Between the Client and the Bank and Game Theory. In: Themistocleous, M., Rupino da Cunha, P. (eds) Information Systems. EMCIS 2018. Lecture Notes in Business Information Processing, vol 341. Springer, Cham. https://doi.org/10.1007/978-3-030-11395-7_40
Download citation
DOI: https://doi.org/10.1007/978-3-030-11395-7_40
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-11394-0
Online ISBN: 978-3-030-11395-7
eBook Packages: Computer ScienceComputer Science (R0)