# data[].attributes.body
Identify and explain relevant economic concepts.

Describe how the topic ties into class economic principles.

# data[].attributes.body
Discuss any market failures, unintended consequences, or information imperfections relevant to your topic.

Explain how these factors challenge or modify the predictions of the standard equilibrium model.

Discuss potential unintended consequences, externalities, market power, or reasons the standard market equilibrium model may not be applicable.

# data[].attributes.body
Identify a policy that could mitigate the issues you discussed.

This section may be placed, moved, or removed depending on your analysis approach (e.g., if you chose to analyze the impact of policy, you may have introduced the policy in your first slide).

# data[].attributes.body
Explain who the stakeholders are.

Who wins and who loses?

# data[].attributes.body
Summarize the positive (descriptive) and normative (value-based) analysis of the policy or situation.

Present a reasoned conclusion on the policy's effectiveness, considering efficiency, equity, winners and losers, etc.

# data[].attributes.body
Introduce the chosen topic.

# data[].attributes.body
Use a graphic to visually demonstrate the standard equilibrium model's application to your topic.

# data[].attributes.body
Present a comparative analysis of the current situation with a past policy or scenario.

Use real-world examples or expert viewpoints to provide a broader perspective.

# data[].attributes.body
Buy Now Pay Later is a service where a short term loan is offered to make an immediate purchase in exchange for interest-free repayment installments over a set period of time.

It is mostly used by young, financially insecure, tech-savvy Americans.

For most users, the appeal of spreading out the cost of a good leads to the use of BNPL.

# data[].attributes.body
BNPL is growing because online commerce is growing (for example, companies like Amazon and Doordash). Online Demand and Supply are both still growing, leading to more BNPL opportunities.

Many Americans are also losing purchasing power, which might lead individuals to the flexibility offered by BNPL.

# data[].attributes.body
BNPL lowers the perceived price of a good for a customer, leading to an increase in demand for that good per the Law of Demand.

# data[].attributes.body
Non-standard factors to consider for policy:

Potential market failure can happen due to both under regulation and over regulation.

Externalities can include adverse or positive effects to adjacent markets, like traditional banking.

Inefficiency typically results from regulation due to deadweight loss.

# data[].attributes.body
Stakeholders to consider (and the direction of their benefit in a totally free market):

Consumers who can afford BNPL (positive)

Consumers who can't (negative)

BNPL companies (positive)

Retailers (positive)

Government (neutral)

Traditional Banks (negative)

# data[].attributes.body
Policy based on Payday Loan regulation should be implemented.

Unlicensed BNPL transactions should be voided by courts.

Single, lump sum repayment should be outlawed.

A minimum number of payments should be set for larger purchases.

# data[].attributes.body
Conclusion:

Positive: BNPL increases demand, increases inequity

Normative: policy is needed to reduce inequity

Overall with this policy, the market experiences some lost efficiency but is outweighed by improved distribution of benefits.

# data[].attributes.body
A similar market (that's older and has more data to draw conclusions from) is the Payday Loan market.

Payday loans also offer short term loans to cover payments but are commonly criticized for disproportionately affecting poorer consumers.