Bar-Gill Oren
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780199663361
- eISBN:
- 9780191751660
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199663361.003.0003
- Subject:
- Law, Company and Commercial Law
This chapter focuses on the credit card contract. It identifies two features common to most credit card contracts — complexity and deferred costs. It presents a behavioural-economics theory of credit ...
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This chapter focuses on the credit card contract. It identifies two features common to most credit card contracts — complexity and deferred costs. It presents a behavioural-economics theory of credit card contracts, and then argues that complexity and deferred costs represent a strategic response by sophisticated issuers to imperfectly rational cardholders. There is a behaviour market failure in the credit card industry that reduces efficiency and hurts cardholders. Regulatory intervention can help minimize the adverse effects of this market failure.Less
This chapter focuses on the credit card contract. It identifies two features common to most credit card contracts — complexity and deferred costs. It presents a behavioural-economics theory of credit card contracts, and then argues that complexity and deferred costs represent a strategic response by sophisticated issuers to imperfectly rational cardholders. There is a behaviour market failure in the credit card industry that reduces efficiency and hurts cardholders. Regulatory intervention can help minimize the adverse effects of this market failure.
Christian Gollier
- Published in print:
- 2012
- Published Online:
- October 2017
- ISBN:
- 9780691148762
- eISBN:
- 9781400845408
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691148762.003.0009
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter makes adaptations to the canonical models of the term structure developed so far, to recognize inequalities as crucial features of our world, arguing that even abstracting from the ...
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This chapter makes adaptations to the canonical models of the term structure developed so far, to recognize inequalities as crucial features of our world, arguing that even abstracting from the heterogeneous allocation of costs and benefits, the existence of huge wealth inequalities between and within countries necessitates such an adaptation. Two models are considered. In the first model, inequalities in society are introduced in the model examined in Part I of this book. However, it is assumed that individuals in this unequal society are able to share risk efficiently, and that they can implement mutually beneficial long-term credit contracts. In the second model, these assumptions are relaxed.Less
This chapter makes adaptations to the canonical models of the term structure developed so far, to recognize inequalities as crucial features of our world, arguing that even abstracting from the heterogeneous allocation of costs and benefits, the existence of huge wealth inequalities between and within countries necessitates such an adaptation. Two models are considered. In the first model, inequalities in society are introduced in the model examined in Part I of this book. However, it is assumed that individuals in this unequal society are able to share risk efficiently, and that they can implement mutually beneficial long-term credit contracts. In the second model, these assumptions are relaxed.
Iris Benöhr
- Published in print:
- 2013
- Published Online:
- April 2014
- ISBN:
- 9780199651979
- eISBN:
- 9780191747885
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199651979.003.0005
- Subject:
- Law, EU Law, Company and Commercial Law
This chapter analyses how fundamental rights, along with the application of a ‘capability approach’ to consumer law, may affect financial consumer contracts, focusing in particular on credit and ...
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This chapter analyses how fundamental rights, along with the application of a ‘capability approach’ to consumer law, may affect financial consumer contracts, focusing in particular on credit and insurance agreements. The main thesis here is that fundamental rights and a focus on capabilities may lead to a more comprehensive protection of consumers, the promotion of information, responsible lending and stronger inclusive instruments. This thesis is supported by examining consumer protection in the area of consumer credit.Less
This chapter analyses how fundamental rights, along with the application of a ‘capability approach’ to consumer law, may affect financial consumer contracts, focusing in particular on credit and insurance agreements. The main thesis here is that fundamental rights and a focus on capabilities may lead to a more comprehensive protection of consumers, the promotion of information, responsible lending and stronger inclusive instruments. This thesis is supported by examining consumer protection in the area of consumer credit.
Francesca Trivellato
- Published in print:
- 2019
- Published Online:
- September 2019
- ISBN:
- 9780691178592
- eISBN:
- 9780691185378
- Item type:
- book
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691178592.001.0001
- Subject:
- Business and Management, Finance, Accounting, and Banking
This book takes an incisive look at pivotal episodes in the West's centuries-long struggle to define the place of private finance in the social and political order. It does so through the lens of a ...
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This book takes an incisive look at pivotal episodes in the West's centuries-long struggle to define the place of private finance in the social and political order. It does so through the lens of a persistent legend about Jews and money that reflected the anxieties surrounding the rise of impersonal credit markets. By the close of the Middle Ages, new and sophisticated credit instruments made it easier for European merchants to move funds across the globe. Bills of exchange were by far the most arcane of these financial innovations. Intangible and written in a cryptic language, they fueled world trade but also lured naive investors into risky businesses. This book recounts how the invention of these abstruse credit contracts was falsely attributed to Jews, and how this story gave voice to deep-seated fears about the unseen perils of the new paper economy. It locates the legend's earliest version in a seventeenth-century handbook on maritime law and traces its legacy all the way to the work of the founders of modern social theory—from Marx to Weber and Sombart. Deftly weaving together economic, legal, social, cultural, and intellectual history, the book describes how Christian writers drew on the story to define and redefine what constituted the proper boundaries of credit in a modern world increasingly dominated by finance.Less
This book takes an incisive look at pivotal episodes in the West's centuries-long struggle to define the place of private finance in the social and political order. It does so through the lens of a persistent legend about Jews and money that reflected the anxieties surrounding the rise of impersonal credit markets. By the close of the Middle Ages, new and sophisticated credit instruments made it easier for European merchants to move funds across the globe. Bills of exchange were by far the most arcane of these financial innovations. Intangible and written in a cryptic language, they fueled world trade but also lured naive investors into risky businesses. This book recounts how the invention of these abstruse credit contracts was falsely attributed to Jews, and how this story gave voice to deep-seated fears about the unseen perils of the new paper economy. It locates the legend's earliest version in a seventeenth-century handbook on maritime law and traces its legacy all the way to the work of the founders of modern social theory—from Marx to Weber and Sombart. Deftly weaving together economic, legal, social, cultural, and intellectual history, the book describes how Christian writers drew on the story to define and redefine what constituted the proper boundaries of credit in a modern world increasingly dominated by finance.
Francesca Trivellato
- Published in print:
- 2019
- Published Online:
- September 2019
- ISBN:
- 9780691178592
- eISBN:
- 9780691185378
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691178592.003.0002
- Subject:
- Business and Management, Finance, Accounting, and Banking
This chapter examines the quotation claiming that Jews invented marine insurance and bills of exchange, which can be read from a compilation of maritime laws assembled with commentary by a provincial ...
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This chapter examines the quotation claiming that Jews invented marine insurance and bills of exchange, which can be read from a compilation of maritime laws assembled with commentary by a provincial French lawyer, Étienne Cleirac, published in Bordeaux under the title Us et coustumes de la mer (Usages and Customs of the Sea). By adding bills of exchange to his commentary on marine insurance, Cleirac paired two credit contracts that by the mid-seventeenth century had become indispensable to long-distance trade and were handled by merchants of all sorts. By this time, marine insurance was no longer considered usurious. In contrast, bills of exchange continued to ignite fierce debates over usury. The ease with which bills of exchange could be passed from one person to another generated the erroneous but indelible impression that they were like paper money. However, unlike banknotes, they were not fully negotiable, nor were payers obliged to accept them.Less
This chapter examines the quotation claiming that Jews invented marine insurance and bills of exchange, which can be read from a compilation of maritime laws assembled with commentary by a provincial French lawyer, Étienne Cleirac, published in Bordeaux under the title Us et coustumes de la mer (Usages and Customs of the Sea). By adding bills of exchange to his commentary on marine insurance, Cleirac paired two credit contracts that by the mid-seventeenth century had become indispensable to long-distance trade and were handled by merchants of all sorts. By this time, marine insurance was no longer considered usurious. In contrast, bills of exchange continued to ignite fierce debates over usury. The ease with which bills of exchange could be passed from one person to another generated the erroneous but indelible impression that they were like paper money. However, unlike banknotes, they were not fully negotiable, nor were payers obliged to accept them.
