What Happens When Information Leaves a Market? Evidence From Postbankruptcy Consumers
نویسنده
چکیده
Federal law mandates the removal of personal bankruptcies from credit reports after 10 years. The removal’s effect is market efficiency in reverse. The short-term effect is a spurious boost in apparent creditworthiness, especially for the more creditworthy bankrupts, delivering a substantial increase in both credit scores and the number and aggregate limit of bank cards. The longer-term effect is lower scores and higher delinquency than initial full-information scores predict. These findings relate to both the debate over the bankruptcy code and the wisdom of influencing market clearing by removing information. Disciplines Finance and Financial Management This journal article is available at ScholarlyCommons: http://repository.upenn.edu/fnce_papers/412 #04409 UCP: BN article # 770403 David K. Musto University of Pennsylvania What Happens When Information Leaves a Market? Evidence from Postbankruptcy Consumers*
منابع مشابه
The patient life: can consumers direct health care?
The ultimate aim of health care policy is good care at good prices. Managed care failed to achieve this goal through influencing providers, so health policy has turned to the only market-based option left: treating patients like consumers. Health insurance and tax policy now pressure patients to spend their own money when they select health plans, providers, and treatments. Expecting patients t...
متن کاملShared Knowledge and Competition for Attention in Information Markets*
Information consumers seek to learn about world events, but often also what others know about those events. Capturing consumers’ attention is essential for information suppliers to thrive in the market. We find that competition for attention leads to homogeneity of information sources—in terms of accuracy and clarity—even when consumers would demand heterogeneous sources. Their equilibrium type...
متن کاملChristian Matt Institute for Information Systems and New Media
When shopping online, consumers have to decide between two vendor types – suppliers and intermediaries. The existing body of research on intermediation usually adopts a market-centric perspective, and subsequently neglects the consumer when making this focal decision. Therefore, using the example of digital music, we offer a consumercentric view on this problem. We use experimental and simulati...
متن کاملCompetition Between Local and Electronic Markets: How the Benefit of Buying Online Depends on Where You Live
We empirically examine the trade-off between the benefits of buying online and the benefits of buying in a local retail store. How does a consumer’s physical location shape the relative benefits of buying from the online world? We explore this problem using data from Amazon on the top selling books for 1497 unique locations in the US for 10 months ending in January 2006. In particular, we exami...
متن کاملStudy of information content Equity Market Value in predicting Shareholder Value Added and Created Shareholder Value Evidence from Tehran Stock Exchange
The aim of this paper is to investigate the relationship between Equity Market Value (EMV) and measures of creation value of the performance evaluation (Shareholder Value Added (SVA) and Created Shareholder Value (CSV)) in Tehran Stock Exchange. Thus this paper examined the creation value in Iranian Companies by Alfred Rappaport model and to assess the relationship, liner regression tests w...
متن کامل