You Get What You Ask For : Testing Information Disclosure in a Multi-Country Study
Financial consumers often fail to compare across different products and do not choose the most cost-effective product or the one most suitable to their needs. This is because the decision of which product to purchase may not only involve unfamiliar...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/132911510224489929/You-get-what-you-ask-for-testing-information-disclosure-in-a-multi-country-study http://hdl.handle.net/10986/28861 |
| Summary: | Financial consumers often fail to
compare across different products and do not choose the most
cost-effective product or the one most suitable to their
needs. This is because the decision of which product to
purchase may not only involve unfamiliar concepts but also
because financial institutions shroud prices to maximize
profits. Many governments have tried to encourage comparison
shopping by introducing legislation to improve disclosure
and transparency.In some cases, governments have also tried
to reduce the cost of financial products by mandating that
low-cost savings products be offered in the marketplace or
have imposed usury laws capping the interest rate that can
be charged on credit products. The fact that large price
dispersion still persists, however, indicates that these
efforts may not have been successful. |
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