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Cognitive Dissonance01:38

Cognitive Dissonance

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Social psychologists have documented that feeling good about ourselves and maintaining positive self-esteem is a powerful motivator of human behavior (Tavris & Aronson, 2008). In the United States, members of the predominant culture typically think very highly of themselves and view themselves as good people who are above average on many desirable traits (Ehrlinger, Gilovich, & Ross, 2005). Often, our behavior, attitudes, and beliefs are affected when we experience a threat to our...
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Self-Discrepancy Theory02:45

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One influential perspective on what motivates people's behavior is detailed in Tory Higgin's self-discrepancy theory (Higgins, 1987). He proposed that people hold disagreeing internal representations of themselves that lead to different emotional states.  
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Social Exchange Theory02:06

Social Exchange Theory

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We have discussed why we form relationships, what attracts us to others, and different types of love. But what determines whether we are satisfied with and stay in a relationship? One theory that provides an explanation is social exchange theory. According to social exchange theory, we act as naïve economists in keeping a tally of the ratio of costs and benefits of forming and maintaining a relationship with others (Rusbult & Van Lange, 2003).
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Social Exchange Theory01:26

Social Exchange Theory

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As formulated by John Thibaut and Harold Kelley, Social Exchange Theory explains human relationships as economic-like exchanges that maximize rewards and minimize costs. This theory suggests that individuals engage in relationships to gain benefits and reduce burdens, similar to economic transactions. It has been widely applied to various types of relationships, including romantic, professional, and social interactions.Rewards and Costs in RelationshipsRelationship rewards include emotional...
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Compensation Mechanisms01:28

Compensation Mechanisms

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The human body employs intricate mechanisms to counteract changes in blood pH, preventing conditions like acidosis (pH < 7.35) and alkalosis (pH > 7.45). These compensatory responses aim to restore normal arterial blood pH by engaging respiratory or renal systems, depending on the source of the imbalance.
Respiratory Compensation
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Glycolysis: Pay-off Phase01:25

Glycolysis: Pay-off Phase

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So far, glycolysis has cost the cell two ATP molecules and produced two small, three-carbon sugar molecules. These molecules will proceed through the second half of the pathway, and sufficient energy will be extracted to pay back the two ATP molecules used as an initial investment and produce a profit for the cell of two additional ATP molecules and two even higher-energy NADH molecules.
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Related Experiment Video

Updated: Nov 27, 2025

Studying Food Reward and Motivation in Humans
12:09

Studying Food Reward and Motivation in Humans

Published on: March 19, 2014

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The Hedonics of Debt.

Faith Shin1, Dov Cohen1, Robert M Lawless2

  • 1Department of Psychology, University of Illinois at Urbana-Champaign, Champaign, IL, United States.

Frontiers in Psychology
|December 7, 2020
PubMed
Summary

Consumers focus on monthly loan payments, showing duration neglect and over-weighting final moments. Surprisingly, extending loan duration with smaller payments can increase willingness to buy, despite higher overall costs.

Keywords:
creditdebtduration neglectfinancial decision-makinghedonicsloanpain of payingpeak-end

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Area of Science:

  • Behavioral Economics
  • Consumer Psychology
  • Decision Science

Background:

  • The concept of

Purpose of the Study:

  • To investigate how consumers evaluate prospective debt payments.
  • To analyze the impact of loan features on willingness to accept loans.

Main Methods:

  • Four experiments were conducted.
  • Participants evaluated prospective debt payments with varying loan features.
  • Willingness to accept loans was measured.

Main Results:

  • Participants exhibited duration neglect, over-weighting final payment moments.
  • Monthly or average payment size heavily influenced loan acceptance.
  • Extending loan duration by 40% did not significantly decrease willingness to accept.
  • Increasing loan length and cost with smaller end payments increased willingness to buy.

Conclusions:

  • Consumer evaluation of debt is influenced by payment structure, not just total cost or duration.
  • Duration neglect and focus on monthly payments are key factors in loan acceptance.
  • Strategic structuring of loan payments can enhance consumer purchasing decisions.