For most of us, when we want to make a major purchase, we apply for a loan. But what if you have no credit score? That’s the case for many immigrants living in the US. One non-profit in San Francisco has adopted a novel way to try and change that.
The Journal of Consumer Research recently published a study called “Overestimating Others’ Willingness to Pay” which outlines the “overvaluing bias”: the tendency to overvalue what another person would pay by nearly 40 percent. While this phenomenon is not new to social psychologists, it clearly influenced the years of easy credit and has more broadly moved Americans […]