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Information disclosure and information acquisition in credit markets

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  • Eccles, Peter
  • Siciliani, Paolo

Abstract

We study how information about prior loan applications shapes competition in credit markets. We examine whether credit registers should record applications that did not lead to origination. This design choice has subtle implications when the failed or withdrawn application was submitted to a lender known for superior screening technology. We show that disclosing past applications lowers the rates offered to borrowers relative to a regime without disclosure, but it also weakens lenders' incentives to invest in advanced screening technologies.

Suggested Citation

  • Eccles, Peter & Siciliani, Paolo, 2026. "Information disclosure and information acquisition in credit markets," International Journal of Industrial Organization, Elsevier, vol. 104(C).
    • Handle: RePEc:eee:indorg:v:104:y:2026:i:c:s0167718725000852
    DOI: 10.1016/j.ijindorg.2025.103219
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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