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- W1499914046 abstract "I use data from an online financial service to show that many consumers fail to stick to their self-set debt paydown plans, and argue that this behavior is best explained by present bias. Each user's sensitivity of consumption spending to paycheck receipt proxies for his short-run impatience. I empirically distinguish between consumers who are aware (sophisticated) and unaware (naive) of their future impatience by exploiting that this sensitivity varies with available resources for sophisticates only. Consistent with present bias, I find that sophisticated agents' planned paydown is more predictive of actual paydown than that of naives, and that their paydown falls with higher measured impatience. This highlights the importance of distinguishing between sophisticated and naive present-biased individuals in understanding their financial decision making." @default.
- W1499914046 created "2016-06-24" @default.
- W1499914046 creator A5006578976 @default.
- W1499914046 date "2015-01-01" @default.
- W1499914046 modified "2023-10-02" @default.
- W1499914046 title "Sticking to Your Plan: Hyperbolic Discounting and Credit Card Debt Paydown" @default.
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- W1499914046 doi "https://doi.org/10.2139/ssrn.2629158" @default.
- W1499914046 hasPublicationYear "2015" @default.
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