When One Error Elicits Another: Unnecessarily Costly Reactions to Personal Fault

Abigail Sussman, University of Chicago, USA
Rourke O'Brien, Harvard University, USA
Personal responsibility for financial shocks can influence consequential responses to identical financial outcomes. Participants are willing to pay higher interest-rates on debt tied to expenses when they (versus another) are responsible for incurring the expenses. Feelings of guilt underlie this costly financial outcome, making it difficult to build savings.
[ to cite ]:
Abigail Sussman and Rourke O'Brien (2014) ,"When One Error Elicits Another: Unnecessarily Costly Reactions to Personal Fault", in NA - Advances in Consumer Research Volume 42, eds. June Cotte and Stacy Wood, Duluth, MN : Association for Consumer Research, Pages: 151-155.