Loan repayment can be viewed as a sequence of instalments. Instalments can either fall over time (i.e., repaying more in the beginning and less in the end), rise or stay constant. Three studies investigated whether the well-established preference for improvement (i.e., falling profiles) can also...

Financial transactions involve costs and benefits. This also holds for loan transactions where the loan itself constitutes the main cost and the loan-financed possession constitutes the main benefit. This paper aims to investigate how the way consumers mentally associate costs and benefits...

Risky discounts differ from other discount formats in that the actual discount level is determined by chance (e.g., “scratch & save” cards). Four studies investigated whether consumers prefer to receive risky discounts on a per-purchase or per-item basis. Although these options do not differ...

Loan use is a process over time, and the subjective loan burden may differ over stages. In this paper, experience of loan burden over time is contrasted with forecasts and recollections. Furthermore, it is suggested that loan burden relates to the mental association between the loan and the...

Kirchler, Hoelzl, and Wahl (2008) presented with the so-called ‘slippery slope’ framework a new approach to understand tax compliance. The slippery slope approach supposes two routes to tax compliance: deterrence of tax evasion by audits and fines on the one hand, and building a trusting...

The Slippery Slope Framework of tax compliance postulates that citizens’ compliance depends on the power of the authorities to enforce compliance and/or trust in the authorities and voluntary cooperation. While trust is widely recognized as a strong determinant of cooperation, empirical...