Can Voluntary Price Disclosures Fix the Payday Lending Market?

This Response discusses Eric J. Chang's article, www.PayDayLoans.gov: A Solution for Restoring Price-Competition to Short-Term Credit Loans. It offers some evidence from recent empirical research to suggest that the federally operated online exchange that Chang proposes for payday lending markets is unlikely to succeed in facilitating price competition. It argues that lenders are unlikely to voluntarily participate in the exchange and that, even if they did, many borrowers are unlikely to use the exchange