Markets provide strong incentives for firms to cater to the demands of consumers, and firms will compete to meet those demands, whether or not those demands represent the wisest choices. One firm might devise a clever self-control device such as a Christmas club, but that firm cannot prevent another firm from offering to lend people money in anticipation of the receipts of those funds. Credit cards and Christmas clubs compete, and indeed both are offered by the same institutions—banks. While competition does drive down prices, it does not always lead to an outcome that is best for consumers.
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