How Do Consumers Avoid Penalty Fees? Evidence from Credit Cards
(2020)
Journal Article
Gathergood, J., Sakaguchi, H., Stewart, N., & Weber, J. (2021). How Do Consumers Avoid Penalty Fees? Evidence from Credit Cards. Management Science, 67(4), 2562-2578. https://doi.org/10.1287/mnsc.2019.3568
Using data from multiple card issuers, we show that the most common penalty fee type incurred by credit card holders-late payment fees-declines sharply over the first few months of card life. This phenomenon is wholly due to some consumers adopting a... Read More about How Do Consumers Avoid Penalty Fees? Evidence from Credit Cards.