The Pain of Paying
Behavioral Economics - Based on Professor Dan Ariely, Duke University
-
🎟️ : People don't like to spend money. We experience of pain of paying because we are loss averse.
-
🎟️ : This pain is thought to be reduced in credit card purchases, because plastic is less tangible than cash, the depletion of resources (money) is less visible and payment is deferred.
-
🎟️ : Different types of people experience different levels of pain of paying, which can affect spending decisions.