Wilson-DefaultEffects-12-16 (1).pdf (137.9 kB)
Default effects, transaction costs, and imperfect information
journal contribution
posted on 2014-07-22, 11:50 authored by Christopher WilsonChristopher Wilson, Luke GarrodLuke Garrod, Alistair MunroWe develop a decision framework with imperfect information to analyze the effects of transaction costs
on the tendency for individuals to remain with a default option. We demonstrate how transaction costs
can be a more important source of such default effects than commonly thought. A further, potentially
surprising result shows that transaction costs are able to explain why some forms of default effects
increase with the number of options.
History
School
- Business and Economics
Department
- Economics
Published in
ECONOMICS LETTERSVolume
119Issue
2Pages
213 - 215 (3)Citation
WILSON, C.M., GARROD, L. and MUNRO, A., 2013. Default effects, transaction costs, and imperfect information. Economics Letters, 119 (2), pp.213-215.Publisher
© ElsevierPublication date
2014Notes
This paper is also a GRIPS Discussion Paper 12-16 and can be found at: http://r-center.grips.ac.jp/DiscussionPapersDetails/293/# This is the author’s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published at: http://dx.doi.org/10.1016/j.econlet.2013.02.022ISSN
0165-1765Publisher version
Language
- en