How income disparity among romantic partners impacts joint consumption decisions

Abstract

Despite its importance, little work has examined how income disparity at the dyad level, specifically between two romantic partners, can impact joint consumption decisions. This research demonstrates that income disparity among romantic partners differently impacts couples with low (vs. high) combined income. In particular, for couples with lower combined income, income disparity decreases spending for joint consumption, but for couples with higher combined income, income disparity increases spending for joint consumption. The effect is mediated by perceived financial well-being as a couple. Moreover, when a calculation intervention is introduced, the proposed effect is attenuated. The findings provide insights in understanding how income disparity among romantic partners influences their joint consumption decisions, which also have implications for designing marketing strategies to reduce the influence of income disparity.