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How painful is spending money? Dan Ariely, who teaches behavioral economics at Duke University, has conducted a group of experiments dealing with how painful spending money really is. He asked people if, when they were dining out, they would prefer to pay with cash or by credit card. The overwhelming response was that they preferred to use the credit card.
He concluded that people feel that it's less painful to pay by credit card. He also suggests that people will spend more money with credit cards than with cash because credit card buying is less painful.
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