Tag Archives: Payment

DeVoe, S. E., Lee, B. Y., &Pfeffer, J. (2010). Hourly versus salaried payment and decisions about trading time and money over time. ILR Review, 63(4), 627-640.

Using longitudinal data from the British Household Panel Survey, the authors examine how individuals’ employment compensation—salaried or hourly—affects their decisions to trade time for money. Results indicate that there is a positive association between hourly wages and a desire to exchange leisure time for more money. This relationship holds even when a fixed-effects model controls …

Continue reading “DeVoe, S. E., Lee, B. Y., &Pfeffer, J. (2010). Hourly versus salaried payment and decisions about trading time and money over time. ILR Review, 63(4), 627-640.”

Gourville, J. T., &Soman, D. (1998). Payment depreciation: The behavioral effects of temporally separating payments from consumption. Journal of Consumer Research, 25(2), 160-174.

Research suggests that individuals mentally track the costs and benefits of a consumer transaction for the purpose of reconciling those costs and benefits on completion of the transaction (Prelec and Loewenstein 1998; Thaler 1980, 1985). In transactions where costs precede benefits, this can lead to a systematic and economically irrational attention to sunk costs (Arkes …

Continue reading “Gourville, J. T., &Soman, D. (1998). Payment depreciation: The behavioral effects of temporally separating payments from consumption. Journal of Consumer Research, 25(2), 160-174.”