Managing Debt and Managing Each Other: Debt Management Decisions in Interpersonal Contexts

Jenny G. Olson, University of Michigan, USA
Scott I. Rick, University of Michigan, USA
Debt management decisions are often shared (e.g., by spouses), but prior debt research has focused on individuals. In an incentive-compatible debt management experiment, dyads behaved less optimally than individuals, showing an enhanced tendency to close small debts despite incentives to focus on large debts. In dyads, financially suboptimal partners “win.”
[ to cite ]:
Jenny G. Olson and Scott I. Rick (2014) ,"Managing Debt and Managing Each Other: Debt Management Decisions in Interpersonal Contexts", in NA - Advances in Consumer Research Volume 42, eds. June Cotte and Stacy Wood, Duluth, MN : Association for Consumer Research, Pages: 184-188.