Default effects, transaction costs, and imperfect information

C-Tier
Journal: Economics Letters
Year: 2013
Volume: 119
Issue: 2
Pages: 213-215

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We develop a decision framework with imperfect information to analyze the effects of transaction costs on the tendency for individuals to remain with a default option. We demonstrate how transaction costs can be a more important source of such default effects than commonly thought. A further, potentially surprising result shows that transaction costs are able to explain why some forms of default effects increase with the number of options.

Technical Details

RePEc Handle
repec:eee:ecolet:v:119:y:2013:i:2:p:213-215
Journal Field
General
Author Count
3
Added to Database
2026-01-25