Narrow Results

This study explores the impact of relative scarcity on borrowing decisions through experiments involving a Brick Breaker computer game. Participants receiving messages about others’ superior achievements exhibited a greater inclination toward larger loans. Gender differences were observed with females showing a heightened tendency to borrow when informed about peers’ accomplishments. These findings underscore the significance of upward social comparisons in loan choices. Notably, high-income inequality may deplete household savings, increasing the risk of debt crises. Effective credit market regulation assumes greater importance in addressing income inequality’s implications.