Do consumers choose the right credit contracts?
- We find that on average consumers chose the contract that ex post minimized their net costs. A substantial fraction of consumers (about 40%) still chose the ex post sub-optimal contract, with some incurring hundreds of dollars of avoidable interest costs. Nonetheless, the probability of choosing the sub-optimal contract declines with the dollar magnitude of the potential error, and consumers with larger errors were more likely to subsequently switch to the optimal contract. Thus most of the errors appear not to have been very costly, with the exception that a small minority of consumers persists in holding substantially sub-optimal contracts without switching. Klassifikation: G11, G21, E21, E51
| Verfasserangaben: | Sumit Agarwal, Souphala Chomsisengphet, Chunlin Liu, Nicholas S. Souleles |
|---|---|
| URN: | urn:nbn:de:hebis:30-23443 |
| Titel des übergeordneten Werkes (Deutsch): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2005,32 |
| Schriftenreihe (Bandnummer): | CFS working paper series (2005, 32) |
| Dokumentart: | Arbeitspapier |
| Sprache: | Englisch |
| Jahr der Fertigstellung: | 2005 |
| Jahr der Erstveröffentlichung: | 2005 |
| Veröffentlichende Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Datum der Freischaltung: | 20.12.2005 |
| Freies Schlagwort / Tag: | Banking; Borrowing; Consumer Credit; Consumer Finance; Consumption-Saving; Credit Cards |
| GND-Schlagwort: | Verbrauch; Sparen; Konsumentenkredit; Kreditkarte |
| HeBIS-PPN: | 19717244X |
| Institute: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
| DDC-Klassifikation: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Lizenz (Deutsch): |  Deutsches Urheberrecht |
