BEGIN:VCALENDAR
VERSION:2.0
PRODID:-//Talks.cam//talks.cam.ac.uk//
X-WR-CALNAME:Talks.cam
BEGIN:VEVENT
SUMMARY:REGULATORY INTERVENTION IN CONSUMER SEARCH MARKETS: THE CASE OF CR
 EDIT CARDS - Alessandro Gavazza\, LSE
DTSTART:20190306T123000Z
DTEND:20190306T140000Z
UID:TALK118507@talks.cam.ac.uk
CONTACT:Emily Brown
DESCRIPTION:We build a framework to understand the effects of regulatory i
 nterventions in credit markets\, such as caps on interest rates and higher
  compliance costs for lenders. We focus on the credit card market\, in whi
 ch we observe a large dispersion of interest rates at which U.S. consumers
  borrow. \n\nOur framework includes two main features that may explain thi
 s dispersion: endogenous search effort/inattention and product differentia
 tion. Our calibration suggests that low search effort accounts for almost 
 all the dispersion in interest rates\, whereas product differentiation is 
 negligible. \n\nThe calibrated model implies that price caps may curb lend
 ers' market power\, but may also reduce borrowers' search effort\, with po
 tentially ambiguous aggregate welfare effects.
LOCATION:KH107\, Cambridge Judge Business School
END:VEVENT
END:VCALENDAR