Economics of Consumer Policy: Consumer Financial Protection

1.5 credits · Graduate

This course critically examines consumer protections in markets for consumer payments, credit, savings, and insurance. With attention to the characteristics of both supply and demand in these markets, we will investigate the various rationales for and effects of consumer protection policies in the United States and elsewhere. An important role of governments in market economies is the enactment and enforcement of laws and regulations designed to protect consumers from fraudulent or deceptive actions of firms. Such policies are often premised on consumers’ lack of information or lack of sophistication. Consumer financial markets are a particular policy focus because products are complex and information asymmetries are ubiquitous, and consumers’ financial decisions have important individual and collective consequences. Rapid innovation in consumer financial products, institutions, and technologies further complicates the landscape for consumer protections in these markets.