CORDIS Project
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This project investigates inefficiencies in consumer credit markets, focusing on high-cost credit and online marketplaces. It aims to understand the economic frictions affecting access and pricing of credit for households, particularly how high-cost loans impact financial health and how information asymmetry affects bo…
Whether (and why) the market for consumer credit is inefficient is still an open question with important implications for household well-being.
The research in this proposal will study sources of inefficiencies in two burgeoning consumer credit institutions: high-cost credit and on-line marketplaces.
Each institution serves borrowers on opposite ends of the wealth and credit risk spectrum.
Thus, they provide an ideal laboratory for studying the wide range of economic frictions that shape the acc…
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