nformation Search To identify the extent of information
search, the following question was asked: “When
making major decisions about credit or borrowing, some
people shop around for the best terms while others don’t.
What number would you/your family be on the scale?”
The extent of information search was measured on a five-level scale (1 = almost no shopping, 5 = a great deal of
shopping). We hypothesize a negative relationship with
the APR and a positive relationship with the dollar
savings in interest payment; the more consumers search,
the lower the APR should be, and the more they save in
their interest payments