The Ineffectiveness of Contract Transparency Tools in Contexts of Informational Vulnerability: Evidence from Spanish Financial Markets

This study investigates the effectiveness of contract transparency tools in mitigating the effects of asymmetric information in consumer contracts, particularly when consumers are vulnerable due to a limited understanding of relevant information. Using logistic regression models with instrumental variables, the research evaluates the performance of these tools in contexts where information asymmetry and consumer comprehension are significant factors. The analysis is based on data from financial markets, providing a relevant framework for exploring these issues. The findings reveal that consumers with lower levels of understanding are less likely to make effective use of transparency tools, which undermines the overall effectiveness of these measures. This outcome underscores a critical issue: the consumers most in need of these tools are often the least equipped to benefit from them, thereby diminishing their intended impact on market efficiency.