Debtors at Play: Gaming Behavior and Consumer Credit Risk
46 Pages Posted: 30 Sep 2019 Last revised: 9 Oct 2019
Date Written: September 28, 2019
Using a unique dataset on gaming and credit cards, we discover that default rates are higher among individuals who spend more, more frequently, and more erratically on video games, and among those who have more and more diverse games on their mobile devices. These results are less pronounced when spending occurs on weekends or bad weather days and more pronounced among overnight spenders. The findings are not driven by financial literacy or specific game types. Furthermore, intense gamers increase luxury, addictive, and impulsive expenditures more after receiving credit cards. Models of self-control offer a consistent explanation of our findings.
Keywords: Behavioral finance, Video game, Self-control, Credit risk
JEL Classification: D12, D14, D91, G41
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