The competitive impact of disclosure requirements in the credit card industry

Theoretical studies have questioned the efficacy of mandatory disclosure re quirements under various conditions, but empirical studies of disclosure re quirements have been rare. This paper tests the impact of the Fair Credit a nd Charge Card Disclosure Act of 1988, enacted specifically to increase the degree of competition in the credit card industry in the face of suspected consumer search costs. The findings suggest that the Act failed to achieve its intended purpose.