Loughborough University
Leicestershire, UK
LE11 3TU
+44 (0)1509 263171
Loughborough University

Loughborough University Institutional Repository

Please use this identifier to cite or link to this item: https://dspace.lboro.ac.uk/2134/15288

Title: Default effects, transaction costs, and imperfect information
Authors: Wilson, Chris M.
Garrod, Luke
Munro, Alistair
Keywords: Default effect
Transaction cost
Imperfect information
Issue Date: 2014
Publisher: © Elsevier
Citation: WILSON, C.M., GARROD, L. and MUNRO, A., 2013. Default effects, transaction costs, and imperfect information. Economics Letters, 119 (2), pp.213-215.
Abstract: We 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.
Description: 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.2013.02.022
DOI: 10.1016/j.econlet.2013.02.022
URI: https://dspace.lboro.ac.uk/2134/15288
Publisher Link: http://dx.doi.org/10.1016/j.econlet.2013.02.022
ISSN: 0165-1765
Appears in Collections:Published Articles (Economics)

Files associated with this item:

File Description SizeFormat
Wilson-DefaultEffects-12-16 (1).pdf137.9 kBAdobe PDFView/Open


SFX Query

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.