The Impact of Credit Cards on Spending: A Field Experiment
@article{IncekaraHafalir2009TheIO, title={The Impact of Credit Cards on Spending: A Field Experiment}, author={Elif Incekara-Hafalir and George Loewenstein}, journal={Behavioral \& Experimental Finance eJournal}, year={2009} }
In a field experiment, we measure the impact of payment with credit card as compared with cash on insurance company employees' spending on lunch in a cafeteria. We exogenously changed some diners' payment medium from cash to a credit card by giving them an incentive to pay with a credit card. Surprisingly, we find that credit cards do not increase spending. However, the use of credit cards has a differential impact on spending for revolvers and convenience users: Revolvers spend less when…
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