Economics

Economics

Defaults often have a large influence on consumer decisions. We identify anoverlooked but practical alternative to defaults: requiring individuals to make explicitchoices for themselves. We study such ?active decisions? in the context of401(k) saving. We find that compelling new hires to make...

[This item is a preserved copy. To view the original, visit http://econtheory.org/] Dispersion in retail prices of identical goods is inconsistent with the standard model of price competition among identical firms, which predicts that all prices will be driven down to cost. One common...

Economics

In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act created a new federal agency, the Consumer Financial Protection Bureau, to improve the functioning of consumer financial services markets. The Bureau is scheduled to open its doors in July 2011. Its first director will be...

The recent financial crisis has led many to question how well businesses deliver services and how well regulatory institutions address problems in consumer financial markets. This paper discusses consumer financial regulation, emphasizing the full range of arguments for regulation that derive...

The recent financial crisis has led many to question how well businesses deliver consumer financial services and how well regulatory institutions address problems in consumer financial markets. In response, the Obama administration proposed a new agency to oversee consumer financial services,...