TY  - UNPD
A1  - Agarwal, Sumit
A1  - Chomsisengphet, Souphala
A1  - Liu, Chunlin
A1  - Souleles, Nicholas S.
T1  - Do consumers choose the right credit contracts?
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2005,32
N2  - 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
T3  - CFS working paper series - 2005, 32 
KW  - Consumption-Saving
KW  - Borrowing
KW  - Consumer Finance
KW  - Consumer Credit
KW  - Credit Cards
KW  - Banking
KW  - Verbrauch
KW  - Sparen
KW  - Konsumentenkredit
KW  - Kreditkarte
Y1  - 2005
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/3054
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-23443
ER  -