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This note provides: (1) an overview of new manifestations of consumer risks that are significant and cross-cutting across four key fintech products: digital microcredit, P2PL, investment-based crowdfunding, and e-money; and (2) examples of emerging regulatory approaches to target such risks....
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Whether consumers are aware of potentially adverse product effects is key to private and social incentives to disclose information about undesirable product characteristics. In a monopoly model with a mix of aware and unaware consumers, a larger share of unaware consumers makes information...
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schemes can also reduce insurers' incentives to conduct appropriate risk management. We investigate stock insurers' risk … a risk-based premium assessment. We identify which guarantee scheme maximizes policyholders' welfare, measured by their … expected utility. We find that the risk-based insurance guarantee scheme can only mitigate the insurer's risk-shifting behavior …
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-related torts when consumers are heterogeneously overconfident about the risk of harm. We elucidate the role of factors shaping the …
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Firms sometimes know more about a consumer's expected usage than the consumer herself. We explore the consequences of this reversal in the information asymmetry. We analyze the consequences of making consumers more informed about themselves. While making consumers more informed decreases their...
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