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...

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...