Mental Money Laundering: A Motivated Violation of Fungibility

2020 ◽  
Author(s):  
Alex Imas ◽  
George Loewenstein ◽  
Carey K Morewedge
Keyword(s):  
Public Policy ◽  
Money Laundering ◽  
Consumer Choice ◽  
Mental Accounting ◽  
Moral Behavior ◽  
Corporate Behavior ◽  
Mixed Support ◽  
New Evidence ◽  
As If

Abstract People exploit flexibility in mental accounting to relax psychological constraints on spending. Four studies demonstrate this in the context of moral behavior. The first study replicates prior findings that people donate more money to charity when they earned it through unethical versus ethical means. However, when the unethically-earned money is first “laundered”––the cash is physically exchanged for the same amount but from a different arbitrary source—people spent it as if it was earned ethically. This mental money laundering represents an extreme violation of fungibility. The second study demonstrates that mental money laundering generalizes to cases in which ethically and unethically earned money are mixed. When gains from ethical and unethical sources were pooled, people spent the entire pooled sum as if it was ethically earned. The last two studies provide mixed support for the prediction that people actively seek out laundering opportunities for unethically earned money, suggesting partial sophistication about these effects. These findings provide new evidence for the ease with which people can rationalize misbehavior, and have implications for consumer choice, corporate behavior and public policy.

Choice Matters

2018 ◽  
Author(s):  
Gordon Moore ◽  
John A. Quelch ◽  
Emily Boudreau
Keyword(s):  
Public Policy ◽  
Social Media ◽  
Healthcare Provider ◽  
Healthcare System ◽  
Consumer Choice ◽  
Marketing Management ◽  
Appropriate Use ◽  
System P ◽  
The U.S

Choice Matters: How Healthcare Consumers Make Decisions (and Why Clinicians and Managers Should Care) is a timely and thoughtful exploration of the controversial role of consumers in the U.S. healthcare system. In most markets today, consumers have more options and autonomy than ever before. Empowered consumers easily shop around for products and services that better meet their needs, and they widely share their reviews on social media to inform and influence other consumers. Businesses have responded with better experiences and prices to compete for consumers’ business. Though healthcare has lagged behind other industries in this respect, there is a rising tide of interest in consumer choice and empowerment in healthcare markets. However, most healthcare provider organizations, individual doctors, and health insurers are unprepared to consider patients as consumers. The authors draw upon the fields of medicine, marketing, management, psychology, and public policy as they take a substantive, in-depth look at consumer choice and point out its appropriate use, as well as its limitations. This book addresses perplexing issues, such as how healthcare differs from other consumer-driven markets, how consumers make healthcare decisions, and how increased consumer choice in healthcare can not only aid and empower American consumers but also improve the overall healthcare system.

The Relationship between Allegations of Economic Crimes in Foreign Investments and the Adjudicative Power of Investor–State Tribunals

2020 ◽  
Author(s):  
Dr Despina Christofi
Keyword(s):  
Public Policy ◽  
Money Laundering ◽  
Legal Framework ◽  
Economic Crime ◽  
Foreign Investments ◽  
Investment Arbitration ◽  
The One ◽  
The Relationship ◽  
Economic Crimes ◽  
Power And Authority

Abstract The article falls within the broad areas of investment and financial law and, in particular, it focuses on various challenges that emerge from allegations of economic crime in investor–State arbitration. In particular, what is examined is how the adjudicative power and authority of investor–State tribunals is affected by alleged investors’ economic crimes. The two examples of economic crimes discussed are money laundering and corruption, due to their growing prominence in the field of investment arbitration. The existing legal framework regarding corruption and money laundering at international and multinational levels is analysed first, as arbitrators should base their decisions on it when they face an allegation of the two aforementioned economic crimes. Afterwards, the article identifies and evaluates three possible options for arbitrators: first, to deny jurisdiction over the particular dispute; second, to refer to relevant principles of international public policy; and, third, to apply the mandatory provisions of a law other than the one applicable in the particular dispute. After critically analysing each of the three options, the article concludes with some suggestions on how arbitrators should deal with alleged cases of economic crime, and, further, how bilateral and multilateral investment treaties could be adjusted so as to tackle this evolving problem.

Timing to the Statement: Understanding Fluctuations in Consumer Credit Use

2020 ◽  
Author(s):  
Sumit Agarwal ◽  
Amit Bubna ◽  
Molly Lipscomb
Keyword(s):  
Credit Card ◽  
Consumer Credit ◽  
Liquidity Constraints ◽  
Mental Accounting ◽  
Debit Card ◽  
Mixed Support

We show that consumers spend 15% more per day in the first week following the receipt of a credit card statement than in the days just prior to the statement. This increase in spending includes both an increase in the likelihood that they use the credit card in the first weeks following their statement and an increase in transaction amount on days they use the credit card. In contrast to the effect on credit card spending, debit card spending is unaffected by credit card statement issuance, suggesting that consumers are not simply switching among modes of payment. Our estimates are based on exogenous variation from bank-assigned statement dates. We propose and test several alternative explanations to this spending puzzle: optimization of the free float, salience effect of the credit card statement, mental accounting, liquidity constraints, and automatic payments. We find that the consumers most apt to spend early in the credit card cycle tend to be those who do not revolve balances and are not close to their credit limit. Thus, this paper documents a puzzle with mixed support for several alternative explanations. This paper was accepted by David Simchi-Levi, finance.

The Mixed Economy of Day Care: Consumer Versus Professional Assessments

1984 ◽  
Vol 13 (3) ◽  
pp. 321-331 ◽  
Author(s):  
Angela C. Browne
Keyword(s):  
Public Policy ◽  
Social Services ◽  
Consumer Choice ◽  
Day Care ◽  
Service Providers ◽  
The United States ◽  
Research Assessment ◽  
Care Programme ◽  
Non Profit ◽  
Child Day Care

AbstractOne of the crucial issues in the evolution of the welfare state is the preferred means of funding and providing social services. In the absence of a federally-funded and centrally-administered child day care programme in the United States, a variety of services and programmes have evolved. Public policy which seeks to encourage service diversity must consider the ability of social service consumers to afford, select or utilize services of quality, or to demand quality from service providers. This study compares child day care services provided under different auspices — public (state and municipal), quasi-public (military), quasi-private (employer-sponsored), non-profit and private proprietary. Consumer ratings of the day care programmes provided under six different auspices are compared to a research assessment of the same six programmes. The data indicate a tendency among consumers to be inattentive regarding the basic elements of care and to overestimate the quality of care. If we accept the view that consumer choice is desirable on procedural grounds (a desirable freedom), then the findings of this study suggest that public policy should strive to enhance the effectiveness of consumer choice.

scholarly journals Tindak Pidana Kejahatan Pencucian Uang (Money Laundering) dalam Pandangan KUHP dan Hukum Pidana Islam

2019 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Ali Geno
Keyword(s):  
Money Laundering ◽  
Financial System ◽  
Second Step ◽  
Financial Assets ◽  
Legitimate Business ◽  
Three Stages ◽  
Proceeds Of Crime ◽  
Financial Transactions ◽  
As If

<p>Money Laundering is an attempt to hide or disguise the origin of money or assets resulting from a criminal act through various financial transactions so that the money or assets appear as if they came from legal activities. There are three stages taken to " purification" the proceeds of crime in laundring money. First, the money generated from a crime activity is changed into a form that does not or does not arouse suspicion through placement in the financial system in various ways (placement). The second step is to conduct financial transactions that are complex, layered and anonymous with the aim of separating the proceeds of crime from various sources so that it is difficult to trace the origin of the fund which in other words hides or disguises the origin of the proceeds of crime (layering). The last step is the stage where the actor re-enters funds that have escaped their origins into Assets that appear legitimate both to be enjoyed directly, invested in various forms of material and financial assets, used to finance legitimate business activities or to refinance activities criminal act (integration).</p>

scholarly journals Getting Used To Sins: Looking At the Conditions of Customer Problems in the Context of Habit and Sin

2021 ◽  
Vol 7 (1) ◽  
pp. 173-206
Author(s):  
İsmail Çevik
Keyword(s):  
Daily Life ◽  
Moral Behavior ◽  
Study Habits ◽  
Muslim Community ◽  
Way Of Life ◽  
Religious Thought ◽  
Time Consciousness ◽  
Over Time ◽  
As If ◽  
The Way

There are experiences and accumulations that people have, consciously or unconsciously, throughout their life. These achievements are generally defined by names such as habit, moderation, temperament, and angel. While behaviors that are liked and praised by other members of the society are accepted, behaviors that are not approved are considered bad. Our habits are indispensable elements of daily life. Since they emerge without thinking and planning rather than being conscious, it makes life easier, practical and fluid. Although it is positive to make moral behavior and virtues a habit, when considered in the context of religious thought and worship life, over time, consciousness / consciousness disappears and can become actions taken without thought. When awareness and consciousness are disabled, religious thought and lifestyle show signs of degeneration. The way of life shaped by habit causes some behaviors that are seen as minor sins in the flow of daily life to be perceived as if there is no religious drawback in practice. Instead of shaping their lives in the light of the Qur'an and circumcision, people develop a unique perception of religion that begins to believe as they live. Verses and hadiths are understood beyond their real meaning with interpretations and compelling interpretations, where weak fatwas are accepted as sources. This situation leads the Muslim community to points that can produce dire consequences in terms of belief. In this study, habits-specific evaluations and determinations will be presented regarding these issues.

Public Policy as if Women Mattered

1996 ◽  
Vol 17 (1) ◽  
pp. 1-26
Author(s):  
Jyl J. Josephson
Keyword(s):  
Public Policy ◽  
As If
Sign in / Sign up

Export Citation Format

Share Document