Mental accounting and small windfalls: Evidence from an online grocer
Milkman first author. Comparing the same online grocery customers' purchases when redeeming a 10 dollar coupon with their purchases without one, grocery spending rose by 1.59 dollars on redemption, and the extra spending went on groceries the customer does not typically buy. The authors say the results fit mental accounting rather than permanent income theories, and explicitly discuss alternative psychological explanations rather than claiming the mechanism.
Milkman first author. Comparing the same online grocery customers' purchases when redeeming a 10 dollar coupon with their purchases without one, grocery spending rose by 1.59 dollars on redemption, and the extra spending went on groceries the customer does not typically buy. The authors say the results fit mental accounting rather than permanent income theories, and explicitly discuss alternative psychological explanations rather than claiming the mechanism.
Written from the abstract read 2026-10-18.
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Milkman, K. L., & Beshears, J. (2009). Mental accounting and small windfalls: Evidence from an online grocer. Journal of Economic Behavior & Organization, 71(2), 384-394. doi:10.1016/j.jebo.2009.04.007.