Question for economists: Would this drive up the prize of the remaining bad debt in expectation, so that so that the marginal utility created by this go down significantly?
That’s a question about the market for debt, which is not particularly transparent. I think it’s something that FTC economists probably could get some information about, since the FTC has a fair amount of insight into debt collection, but otherwise I think it’s going to be very hard to answer. Also, see my other comment about collectibility and value.
Question for economists: Would this drive up the prize of the remaining bad debt in expectation, so that so that the marginal utility created by this go down significantly?
That’s a question about the market for debt, which is not particularly transparent. I think it’s something that FTC economists probably could get some information about, since the FTC has a fair amount of insight into debt collection, but otherwise I think it’s going to be very hard to answer. Also, see my other comment about collectibility and value.