Some New Evidence on Competition in Payday Lending Markets
Contemporary Economic Policy, 2012

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.