Broad and narrow bracketing in gift certificate spending

Felsö, F.; Soetevent, Adriaan R.

doi:10.1016/j.euroecorev.2013.11.011

Cited by 9 publications

(8 citation statements)

References 20 publications

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“…The percentage of narrow framers of this study (18.6%) is in line with those from the previous studies across various measures in different contexts (17% in Felső and Soetevent ; 25% in Gottlieb and Mitchell ; 16% in Kumar and Lim ; 20% in Liu, Wang, and Zhao ). Gottlieb and Mitchell () adopted the same measure with this study for older Americans.…”

supporting

confidence: 90%

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Narrow Framing and Retirement Savings Decisions

Shin¹,

Kim²,

Heath³

2018

Journal of Consumer Affairs

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Theoretical studies suggest narrow framing underlies individuals' saving decisions. When narrow framing is applied to retirement savings decisions, narrow framers tend to make decisions about present consumption without considering future consumption, i.e., saving for consumption in retirement. Time preference for the present and narrow framers' preference to maintain the status quo lead to a decision that is less likely to increase savings for retirement. This study provides empirical evidence that narrow framing bias affects retirement savings decisions. Using a two‐part model, the probit estimation indicates narrow framers anticipated being less willing to increase retirement savings contributions compared to broad framers, and the OLS regression estimates that narrow framers anticipated contributing less than broad framers. Here, narrow framers anticipated being less willing to increase retirement savings (62.6% vs. 71.9%) and contributing less ($70.90 vs. $88.40) than broad framers, thus providing empirical evidence regarding the effects of behavioral biases on financial decisions.

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supporting

confidence: 90%

“…Kumar and Lim () and Liu, Wang, and Zhao () used the degree of clustering in investors' trades as a proxy to identify narrow framers. Felső and Soetevent () identified narrow framers whether consumers spend gift certificates differently than non‐gift labor income or cash gift.…”

mentioning

confidence: 99%

Narrow Framing and Retirement Savings Decisions

Shin¹,

Kim²,

Heath³

2018

Journal of Consumer Affairs

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“…pre-paid cards are often used for smaller purchases, transportation, such as the Oyster card in the UK, or prepaid phone cards) or to certain stores/locations. Thus, they may not be treated as substitutes for cash (see Felsö and Soetevent, 2014) and their impact on aggregate consumer spending is limited.…”

Section: Introductionmentioning

confidence: 99%

“…Hirschman, 1979, Feinberg, 1986, Prelec and Simester, 2001, Raghubir and Srivastava, 2008, Soman, 2001, 2003, Vandoros, 2012. One strand of this research focuses on the differences between cash and gift certificates ("scrip money"), between cash and pre-paid cards, or between different denominations of cash (Felsö and Soetevent, 2014, Mishra et al 2006, Raghubir and Srivastava, 2008, Soman, 2003, Vandoros, 2012. These studies find differences in spending behavior between the payment method and cash as well as within the domain of cash.…”

Section: Introductionmentioning

confidence: 99%

Do consumers pay more using debit cards than cash?

Runnemark

Hedman

Xiao

2015

Electronic Commerce Research and Applications

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We conduct an incentivized experiment to test whether the willingness to pay is higher for debit cards compared to cash for three consumer products. Our findings support this conjecture also after controlling for cash availability, spending type, price familiarity and consumption habits of the products. The evidence thus suggests that different representations of money matters for consumer behavior.JEL classification: D03; D010; E42

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“…They also compare in-kind gifts with gift cards and con…rm O¤enberg's (2007) result by showing that gift cards incur more than 14 percent deadweight loss. With a similar idea, but di¤erent approach, Felso and Soetevent (2014) examine whether gift-recipients in the Netherlands perceive gift certi…cates, cash gifts and non-gift income to be interchangeable. The authors show that the majority (83 percent) of recipients spend the open-loop gift cards in the same way as cash.…”

Section: All I Want For Christmas -Gift Cardsmentioning

confidence: 99%

Christmas Economics - A Sleigh Ride

Birg

Goeddeke

2014

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract Do you believe that at Christmas time the gas prices, the economy and the number of suicides peak? Do you think that the value of presents you are giving to your beloved is of importance? We show in this paper that conventional wisdom about Christmas is often doubtful. Furthermore, we give an idea of how Santa Claus -and maybe you -is able to …nance Christmas celebrations, why emergency departments are a place to especially avoid during this time of the year and why Christmas tree growers might care to explain the di¤erences across species to you this year. We cannot clearly establish whether Christmas entails a welfare loss or gain, however, we give you an idea as to which institutional settings might reduce a potential welfare loss. Also, we give advice about which behaviours might get you more Christmas presents from Santa this year. Finally, we …nd that more research is needed to give conclusive reasons why Santa Claus actually brings presents to (nearly) everyone. Terms of use: Documents in EconStor mayJEL classi…cation: A12, D1, D6, E3, H4, I1, Z1, XM45

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Broad and narrow bracketing in gift certificate spending

Cited by 9 publications

References 20 publications

Narrow Framing and Retirement Savings Decisions

Narrow Framing and Retirement Savings Decisions

Do consumers pay more using debit cards than cash?

Christmas Economics - A Sleigh Ride

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