Dependent Variables
As payoffs to search, two dependent variables were
investigated in separate OLS analyses. The first
dependent variable was the APR of revolvers’ primary
credit card, including bank-type cards, store-related
cards, and other credit cards (Table 1). If consumers
held only one card, this card was considered their
primary card. If consumers reported outstanding
balances on their credit cards, the card with the largest
balance was considered the primary card.
The second measure of search payoff was the estimated
dollar savings in interest payments for revolvers for one
year. It was calculated in order to illustrate the payoff to
search in terms of dollar savings. Mathematically,
Dependent Variables
As payoffs to search, two dependent variables were
investigated in separate OLS analyses. The first
dependent variable was the APR of revolvers’ primary
credit card, including bank-type cards, store-related
cards, and other credit cards (Table 1). If consumers
held only one card, this card was considered their
primary card. If consumers reported outstanding
balances on their credit cards, the card with the largest
balance was considered the primary card.
The second measure of search payoff was the estimated
dollar savings in interest payments for revolvers for one
year. It was calculated in order to illustrate the payoff to
search in terms of dollar savings. Mathematically,
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