Debtors at Play: Gaming Behavior and Consumer Credit Risk

46 Pages Posted: 30 Sep 2019 Last revised: 9 Oct 2019

See all articles by Shuaishuai Gong

Shuaishuai Gong

The University of Hong Kong - Faculty of Business and Economics

Ross Levine

University of California, Berkeley - Haas School of Business; National Bureau of Economic Research (NBER)

Chen Lin

The University of Hong Kong - Faculty of Business and Economics

Wensi Xie

The Chinese University of Hong Kong (CUHK) - CUHK Business School

Date Written: September 28, 2019

Abstract

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

Suggested Citation

Gong, Shuaishuai and Levine, Ross Eric and Lin, Chen and Xie, Wensi, Debtors at Play: Gaming Behavior and Consumer Credit Risk (September 28, 2019). Available at SSRN: https://ssrn.com/abstract=3461261 or http://dx.doi.org/10.2139/ssrn.3461261

Shuaishuai Gong

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

Ross Eric Levine (Contact Author)

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Chen Lin

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

Wensi Xie

The Chinese University of Hong Kong (CUHK) - CUHK Business School ( email )

Cheng Yu Tung Building
12 Chak Cheung Street
Shatin, N.T.
Hong Kong

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