Abstract: . . .  What’s Psychology Worth? A Field Experiment in the Consumer Credit Market Marianne Bertrand Dean Karlan Sendhil Mullainathan Eldar Shafir Jonathan Zinman * October 31, 2005 * University of Chicago Graduate School of Business, NBER . . .
. . .  the individual manipulations as either a positive or a negative. For each offer letter, we then add the number of positive interventions and subtract the number of negative interventions, thereby computing a total number of net positive interventions. Based on prior beliefs from the psychology literature, we code it as a positive intervention when only one possible example loan is shown, when the offered interest rate is compared to an outside rate, and when a same-race photo (as the client) is included in the offer letter. We code the inclusion of a promotional . . .
. . .  What’s Psychology Worth? A Field Experiment in the Consumer Credit Market Marianne Bertrand Dean Karlan Sendhil Mullainathan Eldar Shafir Jonathan Zinman * October 31, 2005 * University of Chicago Graduate School of Business, NBER and CEPR; Yale University; . . .
. . .  marketing could also be used to induce take up of above-market offers. 9 This contrasts with adverse selection on price in this market identified by Karlan and Zinman (2005a). Ausubel (1999) also finds evidence of adverse selection in the U.S. credit card market using data from a field experiment. 5 Page 6 2 Background: The South African Credit Market 2.1 The Market The consumer credit market in South Africa is distinct from most other developing countries in that there is a large, for-profit industry segment . . .
. . .  qualitatively unchanged if we include these 2 additional manipulations, coding them as both positive interventions. 22 Page 23 Pr(T = 1) = F(a b * P c * r d * X) where r is the interest rate and X is a vector of controls, including dummies for experimental wave as well as all variables conditional on which the randomization of any of the manipulations in the intensity variable took place (see section 3.2 for details). Each cell in Table 10 summarizes a separate probit model corresponding to the version of the treatment . . .
--3000,5,300,2823,64714