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Experience in Financial Decision-Making : Field Evidence from Malawi (الإنجليزية)

Fifty-three percent of subjects who owned a high-fee account with a local bank in Malawi did not switch to a new, lower-fee account when given the choice. In contrast, holders of high-fee accounts who had been induced to make more transactions in the past were significantly more likely to adopt the new, cheaper account. Using estimates from a structural model, we find that the different propensity to switch is better explained by differences in the...
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