The Psychology of Borrowing and Lending

What happens when finance mixes with friendship? We investigate the negative consequences of lending money between friends. Lenders’ (dis)satisfaction is driven by lenders’ inflated expectations of control over borrowers’ spending decisions, as well the specific nature of the borrowers’ purchases (hedonic versus utilitarian) with the loaned funds.



Citation:

Noah J. Goldstein, Ashley N. Angulo, and Michael Norton (2013) ,"The Psychology of Borrowing and Lending", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research, Pages: .

Authors

Noah J. Goldstein, University of California Los Angeles, USA
Ashley N. Angulo, University of California Los Angeles, USA
Michael Norton, Harvard Business School, USA



Volume

NA - Advances in Consumer Research Volume 41 | 2013



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