We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard" risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions - characterized by substantial overweighting of small...

We examine the relationship between the prices paid by households and their shopping patterns measured in terms of shopping frequency and the range of stores visited. We use the TNS data which allows us to control for household heterogeneity. The main contribution of the paper is that we find...

We use UK household survey data incorporating measures of financial literacy and behavioural characteristics to analyse the puzzling co-existence of high cost revolving consumer credit alongside low yield liquid savings in household balance sheets, which we term the 'co-holding puzzle'....

This paper examines the relationship between self-control, financial literacy and over-indebtedness on consumer credit debt among a sample of U.K. consumers using data from a household survey. Both lack of self-control and financial illiteracy are positively associated with non-payment of...

This paper reports an experiment that examines the effects of price complexity on market prices. In my experimental posted-offer markets, each seller offers an identical good to buyers with homogeneous preferences. First, sellers simultaneously decide on the price and the tariff structure of...

We utilise questions concerning individual ‘debt literacy' incorporated into market research data on households' unsecured debt positions to examine the association between consumer credit and individual financial literacy. We examine the relationship between individual responses to debt...

This paper examines the impact of changes in household wealth on homeowners' consumption behavior using recent panel data of Japanese households. For an average household, we find the elasticity of consumption spending with respect to household wealth to be roughly 1.0% for housing and 1.8% for...

We disentangle and study the relative importance of different risk preferences in explaining extended warranty purchases and the high premia paid for them. Empirical and behavioral research on insurance is at odds with whether diminishing returns (curvature of the utility function), or loss...