Forget Maximizing Profit. Let’s Be Merely Profitable.
A different take on the mission of a modern company.
Forget Maximizing Profit. Let’s Be Merely Profitable.The Math behind Your Uncashed Checks
- November 23, 2015
- CBR - Behavioral Science
Receiving a check can feel rewarding; the tedious chore of traveling to the bank and cashing it often doesn’t. Individuals who prize immediate gratification tend to be impatient to receive a check, but then put off cashing it. This behavior is confirmed in a field experiment conducted by Columbia University’s Ernesto Reuben, Northwestern’s Paola Sapienza, and Chicago Booth’s Luigi Zingales. In the study, impatient participants chose to receive a check immediately rather than wait to receive a larger check in two weeks, but many then waited more than three weeks to cash it.
More from Chicago Booth Review
People in Water-Scarce Areas Think for the Long Run
Our attitudes about living in the moment are shaped by our cultures’ history of water availability.
People in Water-Scarce Areas Think for the Long Run
For Consumers, Inflation Has an Upside
People are much more aware of how inflation erodes their savings than how it also lowers the real value of debt.
For Consumers, Inflation Has an UpsideMore from Chicago Booth
Your Privacy
We want to demonstrate our commitment to your privacy. Please review Chicago Booth's privacy notice, which provides information explaining how and why we collect particular information when you visit our website.