The Archives

Everything written by Ronald Mann on law, economics, and more

Ronald Mann on Nudging from Debt

The idea that the regularity of behavioral departures from full rationality justifies regulatory intervention has rarely gained more credence than in the context of consumer finance.  The Credit CARD Act of 2009 rests on nothing so much as the supposition that cardholder decisions about spending and repayment reflect systematic misapprehension of the likely patterns of ... Ronald Mann on Nudging from Debt

Competitive Payments

Most of the discussion related to pricing at the point of sale has emphasized the “cross-subsidy” between those that pay with cash and checks and those that pay with credit cards.  This discussion misses the core of the problem in a market where the use of cash and checks is rapidly declining; the central problem ... Competitive Payments

Moving the Ball Forward: Macroeconomic Considerations

What is most surprising about the GAO report is how little the analytical discussion of this subject has advanced in the last decade.  We all know that interchange rates might contribute to higher retail prices: customers that use cheaper payment products can be said to “subsidize” customers that use credit cards.  Starting with the Australian ... Moving the Ball Forward: Macroeconomic Considerations