This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Switching costs and adverse selection in the market for credit cards: new evidence Author info | Abstract | Publisher info | Download info | Related research | Statistics Paul S. Calem
Michael B. Gordy
Loretta J. Mester
Additional information is available for the following
registered author(s):
To explain persistence of credit card interest rates at relatively high levels, Calem and Mester (AER, 1995) argued that informational barriers create switching costs for high-balance customers. As evidence, using data from the 1989 Survey of Consumer Finances, they showed that these households were more likely to be rejected when applying for new credit. In this paper, they revisit the question using the 1998 and 2001 SCF. Further, they use new information on card interest rates to test for pricing effects consistent with information-based switching costs. The authors find that informational barriers to competition persist, although their role may have declined. ; Also issued as Payment Cards Center Discussion Paper No. 05-09
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by Federal Reserve Bank of Philadelphia in its series Working Papers with number
05-16.
Download reference. The following formats are available: HTML ,
plain text ,
BibTeX ,
RIS (EndNote),
ReDIF
Length:
Date of creation: 2005Date of revision:
Handle: RePEc:fip:fedpwp:05-16Contact details of provider: Postal: 10 Independence Mall, Philadelphia, PA 19106-1574 Web page: http://www.philadelphiafed.org/ More information through EDIRC
Order Information: Email: Web: http://www.phil.frb.org/econ/wps/index.html
For technical questions regarding this item, or to correct its listing, contact: (Diane Rosenberger).
Keywords: Credit cards Other versions of this item:
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Ausubel, Lawrence M, 1991.
"The Failure of Competition in the Credit Card Market ,"
American Economic Review ,
American Economic Association, vol. 81(1), pages 50-81, March.
Mark Furletti, 2003.
"Credit card pricing developments and their disclosure ,"
Payment Cards Center Discussion Paper
03-02, Federal Reserve Bank of Philadelphia.
[Downloadable!]
Paul S. Calem & Loretta J. Mester, 1995.
"Consumer behavior and the stickiness of credit card interest rates ,"
Working Papers
95-10, Federal Reserve Bank of Philadelphia.
Other versions:
Paul S. Calem & Loretta J. Mester, 1994.
"Consumer Behavior and the Stickiness of Credit Card Interest Rates ,"
Center for Financial Institutions Working Papers
94-14, Wharton School Center for Financial Institutions, University of Pennsylvania.
Paul S. Calem & Loretta J. Mester, .
"Consumer Behavior and the Stickiness of CreditCard Interest Rates ,"
Rodney L. White Center for Financial Research Working Papers
3-94, Wharton School Rodney L. White Center for Financial Research.
Paul S. Calem & Loretta J. Mester, .
"Consumer Behavior and the Stickiness of CreditCard Interest Rates ,"
Rodney L. White Center for Financial Research Working Papers
03-94, Wharton School Rodney L. White Center for Financial Research.
Calem, Paul S & Mester, Loretta J, 1995.
"Consumer Behavior and the Stickiness of Credit-Card Interest Rates ,"
American Economic Review ,
American Economic Association, vol. 85(5), pages 1327-36, December.
[Downloadable!] (restricted) Berlin, Mitchell & Mester, Loretta J., 2004.
"Credit card rates and consumer search ,"
Review of Financial Economics ,
Elsevier, vol. 13(1-2), pages 179-198.
[Downloadable!] (restricted)
Other versions: Mester, Loretta J, 1994.
"Why Are Credit Card Rates Sticky? ,"
Economic Theory ,
Springer, vol. 4(4), pages 505-30, May.
Other versions: Victor Stango, 2000.
"Competition And Pricing In The Credit Card Market ,"
The Review of Economics and Statistics ,
MIT Press, vol. 82(3), pages 499-508, August.
[Downloadable!] (restricted)
Robert B. Avery & Paul S. Calem & Glenn B. Canner, 2003.
"An overview of consumer data and credit reporting ,"
Federal Reserve Bulletin ,
Board of Governors of the Federal Reserve System (U.S.), issue Feb, pages 47-73.
[Downloadable!]
Stango, Victor, 2002.
"Pricing with Consumer Switching Costs: Evidence from the Credit Card Market ,"
Journal of Industrial Economics ,
Blackwell Publishing, vol. 50(4), pages 475-92, December.
[Downloadable!] (restricted)
Lucia Dunn & Sougata Kerr, 2002.
"Consumer Search Behavior in the Changing Credit Card Market ,"
Working Papers
02-03, Ohio State University, Department of Economics.
[Downloadable!]
David B. Gross, 2002.
"An Empirical Analysis of Personal Bankruptcy and Delinquency ,"
Review of Financial Studies ,
Oxford University Press for Society for Financial Studies, vol. 15(1), pages 319-347, March.
Other versions:
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Gabriel Jiménez & José A. López & Jesús Saurina, 2008.
"Empirical analysis of corporate credit lines ,"
Banco de España Working Papers
0821, Banco de España.
[Downloadable!]
Other versions: Sumit Agarwal & Souphala Chomsisengphet & Chunlin Liu & Nicholas S. Souleles, 2006.
"Do consumers choose the right credit contracts? ,"
Working Paper Series
WP-06-11, Federal Reserve Bank of Chicago.
[Downloadable!]
Other versions: Kartik Athreya & Xuan S. Tam & Eric R. Young, 2008.
"A quantitative theory of information and unsecured credit ,"
Working Paper
08-06, Federal Reserve Bank of Richmond.
[Downloadable!]
Charles Sprenger & Joanna Stavins, 2008.
"Credit card debt and payment use ,"
Working Papers
08-2, Federal Reserve Bank of Boston.
[Downloadable!]
John N. Muellbauer, 2007.
"Housing, credit and consumer expenditure ,"
Proceedings ,
Federal Reserve Bank of Kansas City, pages 267- 334.
[Downloadable!]
Other versions: Emilio Fernandez-Corugedo & John Muellbauer, .
"Consumer credit conditions in the United Kingdom ,"
Bank of England working papers
314, Bank of England.
[Downloadable!]
Access and
download statistics Did you know? Data contributors to RePEc receive monthly emails with details about downloads and abstract views of their works.
This page was last updated on 2009-6-22.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .