The cost of anchoring on credit-card minimum repayments

Article English OPEN
Stewart, Neil;

About three quarters of credit card accounts attract interest charges. In the US, credit card debt is $951.7 billion of a total of $2,539.7 billion of consumer credit. In the UK, credit card debt is £55.1 billion of £174.4 billion of consumer credit. The 2005 US Bankrup... View more
  • References (9)

    Ariely, D., Loewenstein, G., & Prelec, D. (2003). "Coherent arbitrariness": Stable demand curves without stable preferences. Quarterly Journal of Economics, 118, 73-105.

    Chapman, G. B., & Johnson, E. J. (1994). The limits of anchoring. Journal of Behavioral Decision Making, 7, 223-242.

    Lee, J., & Hogarth, J. M. (1999). The price of money: Consumers' understanding of APRs and contract interest rates. Journal of Public Policy & Marketing, 18, 66-76.

    Loewenstein, G., & O'Donoghue, T. (2006). "We can do this the easy way or the hard way": Negative emotions, self regulation, and the law. University of Chicago Law Review, 73, 183-206.

    Mussweiler, T., & Strack, F. (2000). Numeric judgments under uncertainty: The role of knowledge in anchoring. Journal of Experimental Social Psychology, 36, 495-518.

    Thaler, R., & Sunstein, C. (2008). Nudge: Improving decisions about health, wealth, and happiness. New Haven, CT: Yale University Press.

    Tversky, A., & Kahneman, D. (1974, September 27). Judgment under uncertainty: Heuristics and biases. Science, 185, 1124-1130.

    Wilson, T. D., Houston, C. E., Etling, K. M., & Brekke, N. (1996). A new look at anchoring effects: basic anchoring and its antecedents. Journal of Experimental Psychology: General, 125, 387-402.

    Author Note Neil Stewart, Department of Psychology, University of Warwick, Coventry, CV4 7AL, UK. Email: I acknowledge ESRC grant RES-062-23-0952.

  • Metrics
Share - Bookmark