Research Expertise: Consumer and firm behavior in banking markets, behavioral economics, industrial organization.
Professor Victor Stango’s research focuses on household financial decision making over both short- and long-term time horizons. His current work examines how behavioral influences on consumer decision-making are related to each other, to cognitive abilities and other demographics, and to financial decisions and outcomes. That work is supported by grants from the Michigan Retirement Research Center (MRRC), and by the Pension Research Council/TIAA Institute. Stango has also studied the credit card and ATM markets, and has a side interest in sports economics.
Stango’s work has been featured in the Wall Street Journal, The New York Times, The New Yorker, Business Week, Newsweek and major online business news media. He has appeared on “Good Morning America,” Fox News, CNBC, Bloomberg and many other news programs to discuss his work and provide expert commentary. His research has appeared in the American Economic Review, The Journal of Finance, The Review of Financial Studies and other leading academic journals. Stango is an associate editor of The International Journal of Industrial Organization. He is also an affiliate expert with Cornerstone Research, occasionally providing consulting in matters related to the financial service industry.
Before joining the Graduate School of Management in 2008, Stango gained experience at the Tuck School of Business at Dartmouth College, the Federal Reserve Banks of Chicago and New York, and other academic institutions. He also served for several years on the board of Consumer Credit Research Foundation, a nonprofit research foundation supported by providers of short-term credit.
Stango holds a B.A. in economics and political science from the University of Pennsylvania, and a Ph.D. in economics from UC Davis.
People with exponential-growth bias tend to underestimate the long-term cost of debt and are more likely to take on expensive loans, according to cited research by Professor Victor Stango.
Research by Professor Victor Stango details how shareholders lost as much as $12 billion from the backlash of a Tiger Woods scandal.
Corporate sponsors drop Olympian Ryan Lochte: reputational risk and loss of value are driving decisions. Key moment in this evolution: the Tiger Woods debacle. Professor Victor Stango’s research showed companies that Woods endorsed lost billions of dollars in market capitalization following his scandal. Speedo and others wasted no time severing ties to Lochte for his behavior in Rio. (The New Yorker, August 23, 2016)
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UC Davis Graduate School of Management Professor Victor Stango’s research comparing performance of traditional payday loans to those offered by credit unions is cited.
How do a celebrity’s actions affect the market value of their sponsor companies? Graduate School of Management Professor Victor Stango’s research “Celebrity Endorsements, Firm Value, and Reputation Risk: Evidence from the Tiger Woods Scandal” is featured in the Harvard Business Review’s Daily Stat.
Professor Victor Stango
Co-Authors: Chris Knittel, Massachusetts Institute of Technology
Even if credit unions offered short-term loans at better interest rates and lending terms than payday lenders—and most don’t—current payday loan customers say they prefer the convenience of payday lenders, according to a new study by Associate Professor Victor Stango.
Even if credit unions offered short-term loans at better interest rates and lending terms than payday lenders — and most don’t — current payday loan customers would still prefer the convenience of payday lenders, a new University of California, Davis, study suggests.
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.
Sacramento Mayor Kevin Johnson, a former NBA All-Star, and others are pushing a plan to auction off the city’s parking spaces to a private firm in order to collect around $200 million towards building a new arena for the Sacramento Kings. The Huffington Post asked Professor Victor Stango about the value of an investment to keep the NBA team.
- Research Grant, Michigan Retirement Research Center (MRRC), “Behavioral Factors and Long-Run Financial Well-Being,” 2016-2017.
- Research Grant, Pension Research Council/TIAA Institute, “Behavioral Factors and Long-Run Financial Well-Being,” 2016-2017.
- Research Grant, Russell Sage Foundation, “Behavioral Biases in Household Financial Decision-making,” 2010-2012.
- Professor of the Year Finalist, UC Davis Graduate School of Management, 2010.
- Research Grant, National Science Foundation, “Information Technology, Outsourcing and Productivity,” 2008-10.
- Research Grant, Networks, Electronic Commerce, and Telecommunications Institute, Summer 2004, Summer 2006.
- Research Grant, Filene Institute, “Outsource or Die,” 2006-07.
- Research Grant, Filene Institute, “Payment Choices,” 2006-08.
- Research Grant, Federal Deposit Insurance Corporation (FDIC), 2006.
- Allen H. Keally Teaching Award, University of Tennessee, 1999-00.
- Club 6 (High Teaching Evaluations), Haas School of Business, UC Berkeley, 1998.
- Finalist, Allen H. Keally Teaching Award, University of Tennessee, 1997-98.
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.
Rising minimum payments can cause borrowers to default and help generate greater fee income for issuers, says Associate Professor Victor Stango, an associate economist with the Federal Reserve Bank of Chicago, who has studied the impact of the Card Act on lenders’ practices.
Victor Stango, assistant professor, Graduated School of Management, and Christopher Knittel, Economics professors. This article cites a December 2009 study by economics professors Christopher Knittel, associate professor, economics, follow up on their 2009 study of the economic impact of the Tiger Woods scandal. The new Stango-Knittel report finds a negative effect on celebrity endorsements in general, not just on Woods’ worth.
Professor Victor Stango has been analyzing how the Card Act will affect consumer banking. In this article he is quoted, “Card companies are figuring out how to replace old fees with new ones. It’s a race between regulators writing ever-more-complex laws and credit-card companies setting up ever-more-complex fees.”
Assistant Professors Greta Hsu and Victor Stango have both received tenure and will be promoted to associate professor effective this summer.
Financial Times article cites study by Christopher Knittel and Victor Stango, economists at the University of California, Davis, the collective loss in stock market value of all the companies that Woods endorsed was worth $5 billion – $12 billion by the middle of December.
An article discussing the marketability of Tiger Woods, based on a study done by Victor Stango and Christopher Knittel, economics professors at UC Davis.
Professor Victor Stango and Dartmouth Professor Jonathan Zinman argue that the debate over the proposed Consumer Financial Protection Agency should be over what the agency does, not where it is located in the government’s bureaucracy.
Many borrowers mismanage their debt obligations. If they were a little more on top of things, they could save hundreds — even thousands — of dollars in interest and special charges. That’s what Professor Victor Stango found in his study of the credit-card and checking transactions of 917 households over a two-year period.
This article cites Associate Professor Victor Stango’s research that showed that losses related to Tiger Woods’ mistress could cost up to $12 billion to shareholders of his big-money sponsors like Nike, AT&T and Gatorade, a study revealed Monday.
This article cites research by Associate Professor Victor Stango in which he estimated the damage to the market value of Woods’ main sponsors caused by revelations of alleged extramarital affairs that surfaced after he was involved in a minor car accident outside his Florida home on November 27.
(Davis, CA) — Shareholders of Nike, Gatorade and other Tiger Woods sponsors lost a collective $5 to $12 billion in the wake of the scandal involving his extramarital affairs, according to a new study by researchers at the University of California, Davis.
The losses are separate from – and potentially much larger than – damage to Woods’ own earnings.
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).
The typical U.S. household pays $500 a year in bank and credit card fees and interest, more than half of which could be avoided through better planning, according to new research by Victor Stango, assistant professor of management at the University of California, Davis.
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?