Limited and varying consumer attention
Subtitle: evidence from shocks to the salience of bank overdraft fees
By: Victor Stango, Jonathan Zinman
Contributors: Zinman, Jonathan; National Bureau of Economic Research
Series: NBER working paper series -- working paper 17028; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17028.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "We explore dynamics of limited attention in the $35 billion market for checking overdrafts, using survey content as shocks to the salience of overdraft fees.  Conditional on selection into surveys, individuals who face overdraft-related questions are less likely to incur a fee in the survey month.  Taking multiple overdraft surveys builds a "stock" of attention that reduces overdrafts for up to two years.  The effects are significant among consumers with lower education and financial literacy.  Consumers avoid overdrafts not by increasing balances but by making fewer debit transactions and cancelling automatic recurring withdrawals.  The results raise new questions about consumer financial protection policy"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 7/21/2011.

Includes bibliographical references.

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