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Information Disclosure, Cognitive Biases, and Payday Borrowing in the United States

Adair Morse
Researchers provided payday borrowers in the United States information about the true costs of payday loans in order to find out whether they would respond by changing their demand for the product. Better informed individuals reduced their demand significantly, suggesting that getting consumers to...

Providing Endowments to Improve Bargaining Outcomes for Microentrepreneurs in Ghana

Gisella Kagy
Lena Song
Researchers randomly provided more or less cash to garment-making firm owners in Ghana before a bargaining game to evaluate the impact of endowment on the negotiated sale price of a good. Owners of garment-making microenterprises with lower household liquidity agreed to lower sale prices during the...