Carpenter, Jeffrey P.
[Author]
;
Huet-Vaughn, Emiliano
[Other];
Matthews, Peter Hans
[Other];
Robbett, Andrea
[Other];
Beckett, Dustin
[Other];
Jamison, Julian C.
[Other]
Choice Architecture to Improve Financial Decision Making
Published in:Consumer Financial Protection Bureau Office of Research Working Paper ; No. 2017-04
Extent:
1 Online-Ressource (39 p)
Language:
English
DOI:
10.2139/ssrn.3131106
Identifier:
Origination:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 8, 2017 erstellt
Description:
We exploit the principles of choice architecture to evaluate interventions in the market for reloadable prepaid cards. Participants are randomized into three card menu presentation treatments - the market status quo, a regulation-inspired reform, or an enhanced reform designed to minimize attribute overload - and offered choices based on prior structural estimation of individual preferences. Consumers routinely choose incorrectly under the status quo, with tentative evidence the regulation-inspired presentation may increase best card choice, and clear evidence the enhanced reform reduces worst card choice. Welfare analysis suggests the regulation-inspired presentation offers modest gains, while the enhanced policy generates substantial benefits