A Structural Test of Mental Accounting and Consumer Fungibility From Credit Card Expenditures

We compare preferences for credit card versus debit card utilization for a variety of purchases. Using transaction-level data, we estimate that to compensate consumers for every $1 in debt-bearing credit card usage would require over $2 in cash subsidies. Thus, we reject the notion that consumer preferences exhibit rational fungibility.


Nicholas Pretnar, Christopher Olivola, and Alan Montgomery (2019) ,"A Structural Test of Mental Accounting and Consumer Fungibility From Credit Card Expenditures", in NA - Advances in Consumer Research Volume 47, eds. Rajesh Bagchi, Lauren Block, and Leonard Lee, Duluth, MN : Association for Consumer Research, Pages: 232-236.


Nicholas Pretnar, Carnegie Mellon University, USA
Christopher Olivola, Carnegie Mellon University, USA
Alan Montgomery, Carnegie Mellon University, USA


NA - Advances in Consumer Research Volume 47 | 2019

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