Endowment Effects and Usage of Financial Products: Evidence from Malawi
Endowment Effects and Usage of Financial Products: Evidence from Malawi
7 July, 2020 •Similar Articles
Identification Strategy: A Field Experiment on Borrower Responses to Fingerprinting for Loan Enforcement
How do borrowers respond to improvements a lender’s ability to punish defaulters? We implemented a randomized field experiment in Malawi examinin...
Mental Accounting and Mobile Banking: Can labelling an M-PESA account increase savings?
Working with a sample of vulnerable women in Kenya, we conduct a field experiment involving a savings intervention consisting of a labelled mobile ...
Barriers to Household Risk Management: Evidence from India
Why do many households remain exposed to large exogenous sources of non-systematic income risk? We use a series of randomized field experiments in ...
Savings account holders are significantly less likely to switch to another, cheaper account, compared to new clients given a choice between the two accounts. While 42 percent of account holders retained their original, expensive accounts, none of the new clients chose the expensive accounts. We exploit previous experimental variation in account usage and find that account holders that used their account more frequently are more likely to switch. This suggests that induced familiarity with the account can mitigate the endowment effect.