Time discounting and the estimation of loan duration
Article Abstract:
The duration of a loan tends to be underestimated when individuals are provided only with information related to the size of the loan, monthly repayment amount and interest rate. Underestimation of time duration increases when a time-delay in repayment is included to a loan with small repayment amount and information given in a recurrent account frame. Underestimation of duration tends to be smaller when information related to the amount of the monthly payment covering interest charges are provided.
Publication Name: Journal of Economic Psychology
Subject: Psychology and mental health
ISSN: 0167-4870
Year: 1998
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Hyperbolic discounting and the repeated self-control problem
Article Abstract:
Reasons for which a decision-maker who yielded to temptation once is more likely to yield the next time are analyzed, by using the concept of self-fulfilling prophecy.
Publication Name: Journal of Economic Psychology
Subject: Psychology and mental health
ISSN: 0167-4870
Year: 2006
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