The influence of information, competition and cognitive abilities on consumers credit decisions

Purpose and goal

Our research has contributed to a increased understanding of the influence of information and competition on consumer credit decisions. By utilizing register data from a financial intermediary. We produced: “Lender Bidding and Smart Disclosure in Consumer Credit Markets” and the policy memorandum " Online Inter-mediation and the Terms of Consumer Credit ". Our other papers “Rationality in the Consumer Credit Market" and “Balancing Act” has contributed towards a better understanding of the role of cognitive abilities and behavioral biases for consumers credit decisions.

Expected results and effects

Within this project we have produced three academic papers and one policy memo. Two are expected to be published in peer reviewed journals and part of a Research Handbook. [1] “Lender Bidding and Smart Disclosure in Consumer Credit Markets” [2] Online Intermediation and the Terms of Consumer Credit, Sveriges Riksbank Economic Review 2014.1. [3] “Rationality in the Consumer Credit Market: Choosing between Alternative and Mainstream Credit” [4] “Balancing Act: New Evidence and a Discussion of the Theory on the Rationality and Behavioral Anomalies of Choice in Credit Markets,”

Planned approach and implementation

By presenting our research both at academic and government institutions we aim to contribute to an increase in the understanding of the influence of information, competition and behavioral biases on consumer credit decisions. Furthermore, trough this increased understanding we hope that indirectly we contribute to the formulation of more informed and effective policies aimed at optimizing consumers financial decision making.