Sticking to Your Plan: Hyperbolic Discounting and Credit Card Debt Paydown
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چکیده
STICKING TO YOUR PLAN: HYPERBOLIC DISCOUNTING AND CREDIT CARD DEBT PAYDOWN theresa Kuchler, of new york University’s Stern School of Business, reported on an empirical study of individuals’ success in carrying out plans to reduce their credit card balances. Broadly, Kuchler had two objectives. Her first objective was to find evidence for present-biased behavior, in which consumers make plans to reduce future borrowing but systematically deviate from their plans by acting impatiently in the future. Her second objective was to determine the extent to which individuals are sophisticated about their own behavior, in the sense that they understand that they act in a presentNew Perspectives on Consumer Behavior in Credit and Payments Markets
منابع مشابه
Sticking to Your Plan: Hyperbolic Discounting and Credit Card Debt Paydown
Using detailed data from an online service, I analyze the influence of present bias on debt paydown behavior. Each user’s sensitivity of consumption spending to paycheck receipt proxies for his short-run impatience. To distinguish between consumers who are aware (sophisticated) and unaware (naive) of their future impatience, I exploit that this sensitivity varies with available resources for so...
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تاریخ انتشار 2014