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Journal article

The red, the black, and the plastic: Paying down credit card debt for hotels not sofas

Abstract:

Using transaction data from a sample of 1.8 million credit card accounts, we provide the first field test of a major prediction of Prelec and Loewenstein’s (1998) theory of mental accounting: that consumers will pay off expenditure on transient forms of consumption more quickly than expenditure on durables. According to the theory, this is because the pain of paying can be offset by the future anticipated pleasure of consumption only when money is spent on consumption that endures over time. ...

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Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1287/mnsc.2018.3195

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Institution:
University of Oxford
Division:
Social Sciences Division
Department:
Said Business School
Department:
Unknown
Role:
Author
Publisher:
INFORMS Publisher's website
Journal:
Management Science Journal website
Volume:
65
Issue:
11
Pages:
4951-5448
Publication date:
2019-05-23
Acceptance date:
2018-08-11
DOI:
EISSN:
1526-5501
ISSN:
0025-1909
Keywords:
Pubs id:
pubs:983490
UUID:
uuid:043888ea-951d-4a16-984a-c4abb9686d21
Local pid:
pubs:983490
Source identifiers:
983490
Deposit date:
2019-03-20

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