Dvara Research BlogDvara Research Blog
Dvara Research Blog
Doorway to Financial Access
  • Home
  • Our Work
  • Themes
  • Subscribe
    • Email Subscription
    • Feed
  • Contact Us
Menu back  

Impact of Information Disclosure on Consumer Behaviour

March 26, 2021Leave a commentResearch Viewed : 228

By Niyati Agrawal, Monami Dasgupta, Monika Halan, Misha Sharma, Madhu Srinivas

Mis-selling by financial service providers poses a grave threat to consumer protection. This can adversely affect the financial well-being of consumers. Mandating information disclosures in order to bridge the information asymmetry between financial service providers and consumers is one concrete way to curb mis-sale and improve consumer outcomes. Our recent working paper report results from an experimental study that examines the impact of information disclosure on consumers’ purchase decision of a high-risk financial product. We randomly assign two variations of information disclosure among the study respondents- one that is accurate, highlighting both the risks and returns of the product and the other that is inaccurate, focusing prominently on the potential gains from the product. We then examine the differences in purchase decision based on the disclosure type the respondents received and find that the odds of buying the high-risk financial product are 80 to 90% lower when the disclosure type is switched from inaccurate to accurate. The results of our study indicate that disclosures can have substantial impact in altering consumer’s decisions against welfare reducing outcomes. Therefore, in this policy brief, we provide our recommendations to enhance information disclosure.

The full policy brief is available here.

Share Via :Tweet about this on Twitter
Twitter
Share on Facebook
Facebook
Share on LinkedIn
Linkedin
Email this to someone
email
AT1 BondsConsumer Behaviourfinancial wellbeingHousehold Financeinformation disclosuremis-salemis-selling
Leave Comment

Cancel reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

14 + seven =

clear formSubmit

Related posts
De-Risking Lenders, Safeguarding Borrowers: A Case for Commodity Derivatives
April 9, 2021
Delivery of Social Protection Entitlements in India: Unpacking Exclusion, Grievance Redress, and the Relevance of Citizen-Assistance Mechanisms
April 8, 2021
Savings in Gold by Low-income Households: An Empirical Study
March 31, 2021
Pradhan Mantri Jan Arogya Yojana (PM-JAY): The Scheme and it’s Potential to Reform India’s Healthcare System
March 30, 2021
Our Response to RBI’s Discussion paper on Revised Regulatory Framework for NBFCs – A Scale-Based Approach, 2021
March 26, 2021
Access, Redressal & Finance in Uttar Pradesh: Women-run Self-Help Groups (SHGs) in Rural Uttar Pradesh
March 25, 2021
Search
Recent Comments
  • Srikara Prasad on Artificial Intelligence in Digital Credit in India: “Thank you for the feedback and for sharing these resources, Mr Rathi. They will definitely be helpful in our work.”
  • Harshit Rathi on Artificial Intelligence in Digital Credit in India: “Hi, Wonderful article on the use of AI/ML for digital credit in India. As rightly mentioned in the article, many…”
  • Srikara Prasad on Artificial Intelligence in Digital Credit in India: “Thank you, Bindu. Our upcoming posts on regulation of AI in finance will benefit from these pointers. It will be…”
Subscribe and Follow Us

Popular Post

Popular Post
  • De-Risking Lenders, Safeguarding Borrowers: A Case for Commodity Derivatives
    April 9, 2021
  • Delivery of Social Protection Entitlements in India: Unpacking Exclusion, Grievance Redress, and the Relevance of Citizen-Assistance Mechanisms
    April 8, 2021
  • Savings in Gold by Low-income Households: An Empirical Study
    March 31, 2021

Categories

Categories
  • Channels(88)
  • Consumer Protection(33)
  • Events(30)
  • Featured(33)
  • Field Reports(6)
  • From the field(9)
  • General(22)
  • Guest(29)
  • Household Research(75)
  • Long Term Debt Markets(9)
  • News(45)
  • Origination(30)
  • Products(42)
  • Regulation(112)
  • Research(187)
  • Risk Aggregation(26)
  • Risk transmission(63)
  • Small Cities(21)
  • Technology(25)
  • Uncategorized(105)
  • Unemployment Support(5)

Archives

Archives
  • April 2021 (2)
  • March 2021 (10)
  • February 2021 (8)
  • January 2021 (4)
  • December 2020 (7)
  • November 2020 (7)
  • October 2020 (11)
  • September 2020 (10)
  • August 2020 (12)
  • July 2020 (3)
  • June 2020 (5)
  • May 2020 (8)
  • April 2020 (4)
  • March 2020 (8)
  • February 2020 (3)
  • January 2020 (9)
  • December 2019 (4)
  • November 2019 (3)
  • October 2019 (7)
  • September 2019 (3)
  • August 2019 (2)
  • July 2019 (4)
  • June 2019 (4)
  • May 2019 (4)
  • April 2019 (7)
  • March 2019 (2)
  • February 2019 (3)
  • January 2019 (3)
  • December 2018 (5)
  • November 2018 (2)
  • October 2018 (5)
  • September 2018 (2)
  • August 2018 (2)
  • July 2018 (2)
  • June 2018 (2)
  • May 2018 (1)
  • April 2018 (1)
  • March 2018 (5)
  • February 2018 (2)
  • January 2018 (2)
  • December 2017 (5)
  • November 2017 (4)
  • October 2017 (3)
  • September 2017 (1)
  • August 2017 (3)
  • July 2017 (1)
  • June 2017 (3)
  • May 2017 (4)
  • April 2017 (3)
  • March 2017 (4)
  • February 2017 (3)
  • January 2017 (6)
  • December 2016 (5)
  • November 2016 (2)
  • October 2016 (3)
  • September 2016 (5)
  • August 2016 (4)
  • July 2016 (4)
  • June 2016 (8)
  • May 2016 (4)
  • April 2016 (5)
  • March 2016 (4)
  • February 2016 (3)
  • January 2016 (3)
  • December 2015 (3)
  • November 2015 (1)
  • October 2015 (2)
  • September 2015 (3)
  • August 2015 (5)
  • July 2015 (3)
  • June 2015 (3)
  • May 2015 (3)
  • April 2015 (2)
  • March 2015 (3)
  • February 2015 (1)
  • January 2015 (1)
  • December 2014 (5)
  • November 2014 (4)
  • October 2014 (3)
  • September 2014 (4)
  • August 2014 (4)
  • July 2014 (4)
  • June 2014 (8)
  • May 2014 (1)
  • April 2014 (4)
  • March 2014 (5)
  • February 2014 (6)
  • January 2014 (8)
  • December 2013 (7)
  • November 2013 (8)
  • October 2013 (7)
  • September 2013 (7)
  • August 2013 (5)
  • July 2013 (6)
  • June 2013 (7)
  • May 2013 (6)
  • April 2013 (8)
  • March 2013 (9)
  • February 2013 (6)
  • January 2013 (9)
  • December 2012 (8)
  • November 2012 (7)
  • October 2012 (5)
  • September 2012 (5)
  • August 2012 (5)
  • July 2012 (7)
  • June 2012 (4)
  • May 2012 (6)
  • April 2012 (4)
  • March 2012 (7)
  • February 2012 (6)
  • January 2012 (8)
  • December 2011 (8)
  • November 2011 (7)
  • October 2011 (8)
  • September 2011 (7)
  • August 2011 (3)
  • July 2011 (6)
  • June 2011 (11)
  • May 2011 (8)
  • April 2011 (9)
  • March 2011 (13)
  • February 2011 (10)
  • January 2011 (8)
  • December 2010 (10)
  • November 2010 (10)
  • October 2010 (10)
  • September 2010 (7)
  • August 2010 (13)
  • July 2010 (10)
  • June 2010 (6)
  • May 2010 (13)
  • April 2010 (7)
  • March 2010 (10)
  • February 2010 (5)
  • January 2010 (4)
  • December 2009 (3)
  • November 2009 (1)
  • October 2009 (6)
  • August 2009 (1)
  • July 2009 (2)
  • June 2009 (1)
  • May 2009 (1)
  • April 2009 (1)
  • March 2009 (1)

Share Via :Tweet about this on Twitter

Twitter

Share on Facebook

Facebook

Share on LinkedIn

Linkedin

Email this to someone

email

Site Map

www.dvara.com