Don't watch me read: how mere presence and mandatory waiting periods affect consumer attention to disclosures

Alycia Chin and Dustin H. Beckett

Behavioural Public Policy, 2021, vol. 5, issue 2, 202-221

Abstract: To help people make informed decisions, policy-makers often require entities to provide consumers with informational materials known as disclosures. However, it is unclear whether consumers pay attention to disclosures. In two experiments where we manipulate the delivery of disclosures, we find that the mere presence of an observer negatively affects attention to disclosures, while introducing a mandatory waiting period after receiving a disclosure increases attention. In a third study, we analyze more than 3000 surveys answered by recent mortgage borrowers. Borrowers who report receiving disclosures at mortgage closing meetings (which are often attended by multiple stakeholders) are less likely to have questions about their disclosures than those who receive disclosures beforehand, suggesting differential attention. Our findings demonstrate that both mandatory waiting periods and the presence of observers can affect consumers’ attention to disclosures. We discuss implications of our research for policies designed to promote informed consumer decision-making.

Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:bpubpo:v:5:y:2021:i:2:p:202-221_4

Access Statistics for this article

More articles in Behavioural Public Policy from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().