Abstract

  
 

References (16)



 
 

Citations (3)



 


 



Dealer Pricing of Consumer Credit


Giuseppe Bertola


Università di Torino - Dipartimento di Economia; Centre for Economic Policy Research (CEPR)

Stefan Hochguertel


VU University Amsterdam; Tinbergen Institute - Tinbergen Institute Amsterdam (TIA)

Winfried Koeniger


University of London, Queen Mary - School of Economics and Finance; CEPR; Institute for the Study of Labor (IZA)

International Economic Review, Vol. 46, No. 4, pp. 1103-1142, November 2005

Abstract:     
Price discrimination incentives may induce dealers to bear the financial cost of their customers' credit purchases. We focus on how financial market imperfections make it possible to segment the customer population. When borrowing and lending rates differ from each other and from the rate of interest on a durable good purchase, the structure of those rates influences customers' choices to purchase on credit or cash terms, and the scope for dealers' price discrimination. Empirical analysis of a set of installment-credit, personal-loan, and regional interest rate data offers considerable support to the assumptions and implications of our theoretical framework.

Number of Pages in PDF File: 40

Accepted Paper Series


Date posted: November 6, 2005  

Suggested Citation

Bertola, Giuseppe, Hochguertel, Stefan and Koeniger, Winfried, Dealer Pricing of Consumer Credit. International Economic Review, Vol. 46, No. 4, pp. 1103-1142, November 2005. Available at SSRN: http://ssrn.com/abstract=825174

Contact Information

Giuseppe Bertola (Contact Author)
Università di Torino - Dipartimento di Economia ( email )
Via Po, 53
Torino, 10124
Italy
+39 011 670 2730 (Phone)
+39 011 670 2762 (Fax)
HOME PAGE: http://www.personalweb.unito.it/Giuseppe.Bertola/
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Stefan Hochguertel
VU University Amsterdam ( email )
Dept Econ (FEWEB)
De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31 20 59 86033 (Phone)
+31 20 59 89870 (Fax)
Tinbergen Institute - Tinbergen Institute Amsterdam (TIA)
Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands
Winfried Koeniger
University of London, Queen Mary - School of Economics and Finance ( email )
Mile End Road
London, London E1 4NS
United Kingdom
CEPR ( email )
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Institute for the Study of Labor (IZA) ( email )
P.O. Box 7240
Schaumburg-Lippe Str. 7/9
D-53072 Bonn
Germany
Feedback to SSRN (Beta)


Paper statistics
Abstract Views: 499
Downloads: 16
References:  16
Citations:  3

© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright
This page was processed by apollo6 in 1.907 seconds