The Importance of Adverse Selection in the Credit Card Market: Evidence from Randomized Trials of Credit Card Solicitations
利用一家大型金融机构的随机营销试验数据，发现回应较差信用卡推销的消费者信用质量更差，且事后违约率更高，证实了信用卡市场中逆向选择效应的重要性。
Analyzing unique data from multiple large‐scale randomized marketing trials of preapproved credit card solicitations by a large financial institution, we find that consumers responding to the lender's inferior solicitation offers have poorer credit quality attributes. This finding supports the argument that riskier type borrowers are liquidity or credit constrained and, thus, have higher reservation loan interest rates. We also find a more severe deterioration ex post in the credit quality of the booked accounts of inferior offer types relative to superior offers. After controlling for a cardholder's observable risk attributes, demographic characteristics, and adverse economic shocks, we find that cardholders who responded to the inferior credit card offers are significantly more likely to default ex post . Our results provide evidence on the importance of adverse selection effects in the credit card market.