Drawing on relevant literature from a diverse range of academic disciplines we present a conceptual framework intended to further our understanding of perceptions and expectations of price changes and inflation. Based on this framework, we provide a detailed review of the literature and an...

Financial capability requires understanding measures of consumer credit cost and using them appropriately in credit judgements and decisions. In three studies, UK adults' understanding and use of credit cost and duration information were investigated from a bounded rationality perspective. Study...

Consumers can defuse the financial risks of credit default by taking payment protection insurance (PPI). In two studies, predictions derived from Huber’s risk defusing operator theory of decision making were tested. We investigated the effects on PPI judgements and decisions of previous...

Although people normally prefer a more certain option over a riskier option of equal expected value, sometimes they are tempted to choose the riskier, but more rewarding one. Such temptation is even stronger when people decide for the distant future as compared with the near future. In...

The effect of different audit patterns on future compliance is studied in two experiments. A repeated measures design is used with participants filing taxes 60 times. Study 1 focuses on taxpayers' immediate reactions to audits and examines whether a strong decrease in compliance following an...