Limited and Varying Consumer Attention: Evidence from Shocks to the Salience of Bank Overdraft Fees
64 Pages Posted: 9 May 2011 Last revised: 12 Jul 2024
There are 2 versions of this paper
Limited and Varying Consumer Attention: Evidence from Shocks to the Salience of Bank Overdraft Fees
Date Written: May 2011
Abstract
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. Individuals avoid overdrafts by making fewer low-balance debit transactions and cancelling automatic recurring withdrawals. The results raise new questions about consumer financial protection policy.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
By Nava Ashraf, Dean S. Karlan, ...
-
Limited and Varying Consumer Attention: Evidence from Shocks to the Salience of Bank Overdraft Fees
By Victor Stango and Jonathan Zinman
-
Getting to the Top of Mind: How Reminders Increase Saving
By Dean S. Karlan, Margaret Mcconnell, ...
-
Getting to the Top of Mind: How Reminders Increase Saving
By Dean S. Karlan, Margaret Mcconnell, ...
-
Getting to the Top of Mind: How Reminders Increase Saving
By Dean S. Karlan, Margaret Mcconnell, ...
-
Getting to the Top of Mind: How Reminders Increase Saving
By Dean S. Karlan, Margaret Mcconnell, ...
-
Getting to the Top of Mind: How Reminders Increase Saving
By Dean S. Karlan, Margaret Mcconnell, ...
-
By Ian Ayres, Sophie Raseman, ...
-
By Ian Ayres, Sophie Raseman, ...
-
By Ian Ayres, Sophie Raseman, ...