Are Credit Cards for the Short-sighted?

See if you fit the bill as David Evans' article on behavioral economics explains why consumers act and spend the way they do.

BOSTON -- David Evans, economist, author of Paying with Plastic: The Digital Revolution in Buying and Borrowing and Founder of Market Platform Dynamics says that behavioral economics are becoming more and more influential in a recent article on Pymnts.com. Remember what you were taught in high school? Discount the future exponentially. But recently, that's not what economists have found that people actually do - they instead place a lot of value on things they get in the now and then after, discount exponentially - also known as "hyperbolic discounting."

Have you ever paid with a debit card when you have room on your credit card? The behavioral economics crowd would point to this as irrational behavior since the credit card gives you free float and probably some rewards. While the debit card is sucking money from your checking account right away and probably giving you bubkus (though that's changing).

For more, read the full article, on PYMNTS.com - The New Economics of Consumer Behavior and Why You Need to Know About It and stay tuned for the full series on behavioral economics.

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About Market Platform Dynamics (MPD):

MPD is a management consulting firm that ignites catalyst businesses by leveraging new technologies, business models and pricing strategies. MPD has a wealth of experience within industries that are characterized by complex platform-centered ecosystems, including payments, mobile/telecoms, digital and advertising-supported media, and software-based businesses.

MPD works with both incumbents and new entrants, offering a unique lens into the dynamics that shape the competitive playing field. In addition to traditional consulting-based services, MPD's Catalyst Ventures provides intellectual and human capital to new firms. MPD's experts include economists, econometricians, product development specialists, and strategic marketers who apply cutting-edge business theory and statistical methods to the practical problems of building and growing a profitable catalyst business. MPD is headquartered in Cambridge, MA, and has offices in London and Hong Kong.

For more information visit www.marketplatforms.com.

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