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The Consumption Consequences of Couples Pooling Finances
Author(s) -
Garbinsky Emily N.,
Gladstone Joe J.
Publication year - 2019
Publication title -
journal of consumer psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.433
H-Index - 110
eISSN - 1532-7663
pISSN - 1057-7408
DOI - 10.1002/jcpy.1083
Subject(s) - pooling , consumption (sociology) , product (mathematics) , economics , affect (linguistics) , database transaction , consumer spending , ask price , microeconomics , marketing , psychology , business , finance , sociology , social science , geometry , mathematics , communication , artificial intelligence , recession , computer science , keynesian economics , programming language
When couples decide to share their lives, they must also decide how to pool their finances. In this article, we ask: Does the type of bank account from which one spends (joint vs. separate) affect the type of products one chooses to buy (utilitarian vs. hedonic)? Real‐world evidence from analyzing bank transaction records (study 5), as well as data collected from experiments in the field (studies 1 and 2) and lab (studies 3 and 4), converge to support the hypothesis that couple members who spend from a joint bank account are more likely to choose utilitarian (vs. hedonic) products, than those who spend from a separate bank account. We find that these different spending patterns are driven by an increased need to justify spending to one's partner that is experienced when money is pooled together. If a hedonic product becomes easier to justify (study 4), the effect of account type on spending patterns disappears. These findings have important theoretical and practical implications for better understanding financial decision‐making within romantic couples.