Credit Card Purchasing and Static Consumer Behavior Theory

Thomas Sporleder () and Robert R. Wilson

American Journal of Agricultural Economics, 1974, vol. 56, issue 1, 129-134

Abstract: This article treats the theoretical consequences of consumer credit card use. A delayed repayment model provides consumer optimization and indifference conditions between cash and credit card transactions. Under realistic interest and opportunity cost rates, consumers can rationally let a balance revolve about 39 percent of the time and maintain indifference over time.

Date: 1974
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:56:y:1974:i:1:p:129-134.

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