Experimental Evidence of the Relationship between Reading the Fine Print and Performance of Form-Contract Terms

Zev J. Eigen

Journal of Institutional and Theoretical Economics (JITE), 2012, vol. 168, issue 1, 124-141

Abstract: Recent empirical research has established what many assumed - few people read form contracts. This research employs an online experimental design to fill gaps in the literature by asking two important questions: (1) To what extent does information about the exchange beyond the contract substitute for information in the contract, so that more external information reduces contract reading? (2) Is there a relationship between form-contract readership and contract performance? Results suggest that individuals spend almost three times more time reviewing form contracts when less information is provided outside the contract, and that greater time spent reviewing form contracts is associated with increased contract performance.

JEL-codes: C93 D03 D86 K12 Z13 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (4)

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