The Market for Information and Credit Card Regulation

By Todd Zywicki on March 17, 2011

Dr. Todd Zywicki, Director at Global Economics Group, discusses new regulations for credit card practices and billing. In The Market for Information and Credit Card Regulation (Banking & Financial Services Policy Report, Vol. 28, No. 1, 2009), Dr. Zywicki, shows that these new regulations do not clearly specify the market failure that is to be addressed, and as a result, efforts to coherently regulate consumer credit are undermined. Dr. Zywicki proposes that instead of regulation, technology and market innovation may provide an opportunity for a more efficient consumer credit regulator. He suggests that enabling consumers to easily sort and compare competing credit card offers by the terms they care most about, consumers will be able to sift through the loads of information that is given to them”some of it important, some of it not. The Market for Information and Credit Card Regulation