The extent of information search lowered the revolvers’
interest rate significantly. Table 5 reads, for example, a
movement from 1 (almost no shopping) to 2 (little
shopping) reduces the interest rate reported by 37 basis
points, other factors held equal for revolvers.d
Holding all
other variables constant, revolvers who did a great deal
of search paid 146 basis points less than those who did
no shopping and 73 points less than those who did a
moderate amount of shopping.