Construct · 1 fields · 1 citations

balance-matching heuristic: a standalone construct

One name. One construct. A landmark on the map.

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Behavioral economics

people splitting credit card repayments in proportion to card balances rather than paying off the highest interest card first.

In behavioral economics, balance-matching heuristic refers to people splitting credit card repayments in proportion to card balances rather than paying off the highest interest card first. This meaning comes from Gathergood (2019) in American Economic Review.[1]

Unit
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Nearby constructs

credit2 fields · 2 citationsjingle · one word, two constructs heuristic4 fields · 4 citationsjingle · one word, four constructs interest4 fields · 5 citationsjingle · one word, four constructs

References

Gathergood, J., Mahoney, N., Stewart, N., & Weber, J. (2019). How Do Individuals Repay Their Debt? The Balance-Matching Heuristic. American Economic Review, 109(3), 844-875. https://doi.org/10.1257/aer.20180288

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