Consumer confusion : the choice of AFORE in Mexico /

Consumer confusion : the choice of AFORE in Mexico /

Saved in:

Bibliographic Details
Author / Creator:	Calderón-Colín, Roberto, author.
Imprint:	Washington, D.C. : International Monetary Fund, Monetary and Capital Markets, 2008. ©2008
Description:	1 online resource (61 pages) : illustrations
Language:	English
Series:	IMF working paper, 2227-8885 ; WP/08/177 IMF working paper ; WP/08/177.
Subject:	Pension trusts -- Mexico -- Management -- Econometric models. Competition -- Mexico -- Econometric models. Competition -- Econometric models. Mexico.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12499561

Hidden Bibliographic Details
Other authors / contributors:	Domínguez, Enrique E., author. Schwartz, Moisés J. (Moisés Jaime), 1962- author. International Monetary Fund. Monetary and Capital Markets Department.
ISBN:	1451914881 9781451914887 9781451870350 1451870353 9781451914887
Notes:	"July 2008." Includes bibliographical references (pages 59-61). Print version record.
Summary:	This paper was prepared for the World Bank 4th Annual Contractual Savings Conference (Washington DC, April 2008). The article shows that account transfers among pension administrators in Mexico barely respond to price or return considerations and in general has not improved the consumer's pension balance. Instead of strengthening competition through lower fees and higher returns for the consumer, AFORE switching has so far undermined the system and resulted in the destruction of value. Moreover, "noisy" evaluations of the product by the consumer tend to undermine the power of competition. Thus, an increased number of pension fund managers has not provided a more competitive environment. The theoretical framework allows for the estimation of "noise" and mark-ups in the AFORE industry. As the number of AFOREs increases, the mark-up diminishes at a very slow rate. This implies that more participants in the industry will hardly affect prices
Other form:	Print version: Calderón-Colín, Roberto. Consumer confusion. Washington, D.C. : International Monetary Fund, Monetary and Capital Markets, 2008
Standard no.:	10.5089/9781451914887.001

Description
Summary:	This paper was prepared for the World Bank 4th Annual Contractual Savings Conference (Washington DC, April 2008) co-organized by Gregorio Impavido (gimpavido@imf.org). The article shows that account transfers among pension administrators in Mexico barely respond to price or return considerations and in general has not improved the consumer's pension balance. Instead of strengthening competition through lower fees and higher returns for the consumer, AFORE switching has so far undermined the system and resulted in the destruction of value. Moreover, "noisy" evaluations of the product by the consumer tend to undermine the power of competition. Thus, an increased number of pension fund managers has not provided a more competitive environment. The theoretical framework allows for the estimation of "noise" and mark-ups in the AFORE industry. As the number of AFOREs increases, the mark-up diminishes at a very slow rate. This implies that more participants in the industry will hardly affect prices.
Item Description:	"July 2008."
Physical Description:	1 online resource (61 pages) : illustrations
Bibliography:	Includes bibliographical references (pages 59-61).
ISBN:	1451914881 9781451914887 9781451870350 1451870353
ISSN:	2227-8885 ;