Download this Paper Open PDF in Browser

Tightwads and Spendthrifts

44 Pages Posted: 26 Apr 2006  

Scott Rick

University of Michigan, Stephen M. Ross School of Business

Cynthia Cryder

Washington University in St. Louis - John M. Olin Business School

George Loewenstein

Carnegie Mellon University - Department of Social and Decision Sciences

Date Written: June 28, 2007

Abstract

Consumers often behave differently than they would ideally like to behave. We propose that an anticipatory pain of paying drives tightwads to spend less than they would ideally like to spend. Spendthrifts, by contrast, experience too little pain of paying and typically spend more than they would ideally like to spend. This article introduces and validates the Tightwad-Spendthrift scale, a measure of individual differences in the pain of paying. Spending differences between tightwads and spendthrifts are greatest in situations that amplify the pain of paying and smallest in situations that diminish the pain of paying.

Keywords: Consumer Decision Making, Individual Differences, Behavioral Economics, Experimental Economics

JEL Classification: C91, D91, M31

Suggested Citation

Rick, Scott and Cryder, Cynthia and Loewenstein, George, Tightwads and Spendthrifts (June 28, 2007). Available at SSRN: https://ssrn.com/abstract=898080 or http://dx.doi.org/10.2139/ssrn.898080

Scott Rick (Contact Author)

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

HOME PAGE: http://webuser.bus.umich.edu/srick/

Cynthia Cryder

Washington University in St. Louis - John M. Olin Business School ( email )

One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
United States

George F. Loewenstein

Carnegie Mellon University - Department of Social and Decision Sciences ( email )

Pittsburgh, PA 15213-3890
United States
412-268-8787 (Phone)
412-268-6938 (Fax)

Paper statistics

Downloads
1,939
Rank
5,915
Abstract Views
12,511