Research Expertise: Consumer and firm behavior in banking markets, the design of sound public policy in banking
Associate Professor Victor Stango’s current research focuses on household financial decision making over both short- and long-term time horizons. His other current work, supported by a grant from the National Science Foundation, examines how information technology outsourcing affects firms and consumers in the financial services industry. Stango has also studied the credit card and ATM markets, and has a side interest in sports economics.
Research Expertise: Economics, strategy, public policy, competitive strategy, energy economics, public policy analysis, anti-trust policy, regulation
Consulting: Public utilities, telecommunications, wine industry, energy, strategy
A critical question in the policy debate about payday lending is whether other financial institutions can plausibly provide attractive and lower‐priced substitutes for standard payday loans. In this study, Professor Victor Stango presents several new pieces of evidence addressing the question, focusing on whether credit unions, which are often held as the strongest potential competitors to payday lenders, might viably compete in the payday loan market.
Active efforts to organize the Graduate School of Administration, as it was known in 1981, were launched under the leadership of Alexander F. McCalla, professor of agricultural economics and former dean of the UC Davis College of Agricultural and Environmental Sciences. McCalla was asked to serve as the founding dean of the nascent program from 1979 to 1981. Together with a 13-member planning committee, McCalla was responsible for the School’s initial organization and development.
Fuzzy Math, Disclosure Regulation, and Market Outcomes: Evidence from Truth-in-Lending Reform
Review of Financial Studies, 2011
In this paper, Associate Professor Victor Stango and co-author Jonathan Zinman from Dartmouth College posit that consumer lenders shroud interest rates and market “low monthly payments” to price discriminate on “fuzzy math” or “payment/interest bias”: consumers’ pervasive tendency to underestimate borrowing costs when an interest rate is not disclosed.
In 2010, Associate Professor Victor Stango was awarded over $130,000 to study how behavioral biases correlate with each other in the population at large and how they interact in everyday financial decision-making.
In this study, Professors Victor Stango and Christopher R. Knittel estimate the stock market effects of the Tiger Woods scandal on his sponsors and sponsors’ competitors. In the 10-15 trading days after the onset of the scandal, the full portfolio of sponsors lost more than two percent of market value, with losses concentrated among the core three sponsors EA, Nike and PepsiCo (Gatorade).
Consumers in the United States make billions of transactions each year using cash, checks, debit cards and credit cards. How much does this cost them?
The U.S. GDP will begin to rise and the credit freeze will begin to thaw by the end of this year, according to Professor Robert Smiley, who was invited to present his analysis of the recession to more than 150 wine industry professionals and business owners at the Second Annual Napa Valley Grape Growers Association meeting in March.
The wine industry is making a concerted effort to adopt environmentally responsible practices but sees a need for better education among both consumers and professionals on many “green” issues, according to surveys of wine industry professionals and executives conducted by Professor Robert Smiley, director of wine studies at the School.
Professor Robert Smiley, director of wine industry studies, presented his analysis of the current state and future of the wine industry to executives and financiers at the 15th annual Wine Industry Financial Symposium last September in Napa, California.