Calem, Paul S.; Gordy, Michael B.; Mester, Loretta J. - Federal Reserve Bank of Philadelphia - 2005
To explain persistence of credit card interest rates at relatively high levels, Calem and Mester (AER, 1995) argued that informational barriers create switching costs for high-balance customers. As evidence, using data from the 1989 Survey of Consumer Finances, they showed that these households...
