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Trial Title Online RCT Ireland Conned by a Cashback? Disclosure, Nudges and Consumer Rationality in Mortgage Choice
Abstract The study conducts a series of online choice experiments to assess the impact of advanced consumer disclosure and misleading marketing nudges on preference for expensive cashback mortgage products in Ireland. Financial products with a cashback feature typically cost consumers significantly more in the long run. Using a nationally representative online sample in Ireland, the chapter finds that consumers who are younger, less educated, suffer from present bias, and are inattentive are more likely to choose costly cash back mortgages. Further, the experiment provides strong evidence that advanced consumer disclosure improves financial decision making of customers and that the negative nudges, or advertising, encourages prospective buyers into more costly mortgages. The study conducts a series of online choice experiments using nationally representative data to assess the impact of advanced consumer disclosure and misleading marketing nudges on preference for expensive cashback mortgage products in Ireland. Financial products with a cashback feature typically cost consumers significantly more in the long run.
Last Published January 10, 2020 11:16 AM January 23, 2020 05:13 AM
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