Evolving market dynamics foster consumer inattention that can lead to risky purchases, says researchers

Risk-aversion over time among high-risk borrowers. Credit: Journal of Consumer Research (2024). DOI: 10.1093/jcr/ucae018 Researchers have developed a new theory of how changing market conditions can lead large numbers of otherwise cautious consumers to buy risky products such as subprime mortgages, cryptocurrency or even cosmetic surgery procedures. These changes can occur in categories of products that are generally low risk when they enter the market. As demand increases, more companies may enter the market and try to attract consumers with lower priced versions of the product that carry more risk. Read More