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arXiv · 2210.14631

How Money Enters Before It Leaves: Experimental Remuneration and the Mobile-Payment Effect

Yizhao Jiang
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Abstract

Consequential purchasing experiments typically focus on how money leaves a consumer. When an experiment provides spendable funds before valuation, however, the preceding inflow can also shape the payment contrast subsequently measured. In a rule-assigned 2 x 2 experiment, university participants received an RMB 30 participation payment either in cash or by WeChat transfer and completed any binding purchase either in cash or through WeChat Pay. They reported willingness to pay for two displayed products in an incentivized BDM-style procedure. The primary sample contains 522 protocol-valid integer valuations from 274 participants across two implementations. Mobile rather than cash payment changed adjusted willingness to pay by -RMB 0.39 following cash remuneration and by +RMB 2.21 following mobile remuneration. The difference between these conditional contrasts was RMB 2.60 (95% CI [0.86, 4.34]), or 0.60 residual standard deviations; a participant-level, within-wave permutation test yielded p = .004. The interaction was similar for a mug and a face-value voucher pair and directionally consistent across implementations. Exploratory decomposition locates the asymmetry in lower valuation when mobile-transferred remuneration is followed by cash payment. The findings document short-run receipt-payment sequence dependence and show that experimental remuneration forms part of the payment environment: an estimate attributed to a payment medium can depend on how immediately available funds first entered the consumer's budget.

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Yizhao Jiang. 2022-10-26. How Money Enters Before It Leaves: Experimental Remuneration and the Mobile-Payment Effect. https://arxiv.org/abs/2210.14631

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