Warren on Rationality, Choice, and Regulation in the Credit Card Market

Joshua Wright December 28, 2006

Truth on the Market View Original Source

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Elizabeth Warren (Credit Slips) points to an interesting empirical study by Agarwal, Liu, Souleses, and Chomsisengphet (“ALSC”) which examines consumer credit card selection in a natural experiment setting in which a card company offers two cards to consumers: (1) a high interest rate, no annual fee card and (2) a low rate card with an annual fee.

Read the full piece here.