BEGIN:VCALENDAR VERSION:2.0 PRODID:-//jEvents 2.0 for Joomla//EN CALSCALE:GREGORIAN METHOD:PUBLISH BEGIN:VEVENT UID:a0ace1ea42a5b84e75cb914773c77d8e CATEGORIES:Seminars CREATED:20180103T164908 SUMMARY:Antoinette Schoar - Massachusetts Institute of Technology DESCRIPTION;ENCODING=QUOTED-PRINTABLE:

Do Cre dit Card Companies Screen For Behavioral Biases? (joint with Hong Ru)

Abstract:

We analyze the supply side of credit card markets, and the pricing and marketing strategies of issuer s. First, card issuers target less-educated customers with more steeply bac k-loaded and hidden fees (e.g., higher late and over-limit fees). Second, i ssuers use rewards programs to screen for unobservable borrower types. Fina lly, we use increases in state-level unemployment insurance (UI) as positiv e shocks to consumer creditworthiness and show that issuers rely more on ba ck-loaded (hidden) fees when UI increases, especially for less-educated cus tomers. This result documents a novel trade-off: card issuers weigh short-t erm fee maximization against increases in credit risk, when using back-load ed fees.

 

DTSTAMP:20260405T210942Z DTSTART:20180419T163000Z DTEND:20180419T180000Z SEQUENCE:0 TRANSP:OPAQUE END:VEVENT END:VCALENDAR