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Bos, Marieke; Carter, Susan Payne; Skiba, Paige Marta --- "Balancing act: new evidence and a discussion of the theory on the rationality and behavioral anomalies of choice in credit markets" [2018] ELECD 213; in Teitelbaum, C. Joshua; Zeiler, Kathryn (eds), "Research Handbook on Behavioral Law and Economics" (Edward Elgar Publishing, 2018) 101

Book Title: Research Handbook on Behavioral Law and Economics

Editor(s): Teitelbaum, C. Joshua; Zeiler, Kathryn

Publisher: Edward Elgar Publishing

ISBN: 9781849805674

Section: Chapter 4

Section Title: Balancing act: new evidence and a discussion of the theory on the rationality and behavioral anomalies of choice in credit markets

Author(s): Bos, Marieke; Carter, Susan Payne; Skiba, Paige Marta

Number of pages: 21

Abstract/Description:

An emerging literature explores how people choose between and use forms of consumer credit. In their chapter, Bos, Carter, and Skiba reflect on the existing literature that analyzes the choice between traditional forms of credit and non-traditional forms of credit such as pawnshop loans and payday loans. The authors add to this literature by introducing new data on observed choices of customers switching to pawnshop loans when payday loans are not available. They bring together these facts to discuss the behavioral economics of choice across these credit markets. They outline the relevant behavioral economics theory, which they hope will inform regulators’ choices in governing alterative credit markets.