Alejandro Ponce|Enrique Seira|Guillermo Zamarripa
Borrowing on the Wrong Credit Card? Evidence from Mexico
Instituto Tecnológico Autónomo de México
establish new facts way consumers allocate debt among credit cards using data representative sample cardholders mexico find relative prices weak predictors allocation debt purchases payments consumers allocate large fraction debt highinterest cards incurring cost 31 percent minimum using experiment find consumers substitute price margin although respond salient temporary lowinterest offers conclude limited attention mental accounting best rationalize results discuss implications market jel d14 g21 o12 o16