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The Impact of Price Display on Financial Decisions

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  • Antonia Gipp

Abstract

Credit decisions play an important role for the economic wellbeing of households. However, the complexity of products and varying price information display makes it hard for consumers to navigate this field. Empirical evidence has important implications for consumer protection policies, as many people fail to make optimal choices for themselves and struggle to understand credit cost information. Presenting additional information on absolute fees can help consumers to make more informed choices. This article reviews the literature on the impact of price display on financial decisions. Research from marketing and other fields provides related evidence.

Suggested Citation

  • Antonia Gipp, 2022. "The Impact of Price Display on Financial Decisions," DIW Roundup: Politik im Fokus 140, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwrup:140en
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.842987.de/DIW_Roundup_140_en.pdf
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    References listed on IDEAS

    as
    1. Sumit Agarwal & Souphala Chomsisengphet & Chunlin Liu & Nicholas S. Souleles, 2015. "Do Consumers Choose the Right Credit Contracts?," The Review of Corporate Finance Studies, Society for Financial Studies, vol. 4(2), pages 239-257.
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