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G2a Anchoring Effects on Student Loan Decisions: Evidence from an Experimental Design
Key Words
Anchoring effects, student loans, college, behavioral economics
Short Description
In the present study, survey participants are asked to provide college attendance loan advice to a randomly assigned experimental scenario. The paper finds that participants are influenced by their own student loan experience (or lack of) to determine if and how much student loans should young adults in the hypothetical scenarios take. The study contributes to our understanding of the decision-making process of taking out student loans while providing evidence of an instance of anchoring effects having potential real life implications.
First & Corresponding Author
Nilton Porto, University of Rhode Island
Authors in the order to be printed
Nilton Porto, Soo Hyun Cho, Michael Gutter