Fundação para a Ciência e a Tecnologi
Governance, Economy and Citizenry
A behavioural approach to consumer credit decision-making
The four main goals of this project are, thus:1) To investigate the heuristics and the cognitive biases that affect consumer credit decision-making, when accessing and appraising information and choosing. Indeed, people may fail obtaining relevant information due to inertia, or they may not process it accurately due to calculative inability, framing effects, myopia, over-confidence, or they may fail to act on this information due to lack of selfcontrol.2) To investigate the extent to which sellers' marketing strategies manipulate heuristics and exploit consumer cognitive biases.3) To investigate the extent to which consumer protection policy adequately addresses the identified biases and their exploitation by firms.4) To recommend policy proposals that better address the complexity of consumer credit decision-making.