|Sector:||Behavioural | Behavioural and experimental economics | Business and industry | Consumer and firm behaviour | International institutions | NGOs and consumer advocacy | Regulators and government|
|Client:||Financial Conduct Authority|
|Tagged:||behavioural and experimental consumer behaviour experiments market studies|
As part of the FCA’s Asset Management Market study, London Economics conducted a behavioural experiment to test the impact of different ways of presenting information on charges on the extent that retail investors pay attention to charges in their decision-making. Treatments tested included: warning investors about the impact of charges a) via a written message and b) using a chart; presenting a chart comparing charges to the market average; and using a review screen to slow down the process and encourage investors to further consider charges. The treatments had significant impacts on respondents’ choices and their understanding and awareness of the charges. The findings will now be used by the FCA to inform it’s proposed remedies in this market.