The Bottom Line

Freakonomics blogged about how Texan Timothy Dale Edwards (profession: hobo) is using a website called PimpThisBum.com to attract more donations to his collection efforts. The key reason why he’s using a website in particular to get donations? Two words: credit cards.

Why are credit cards so important? Well, according to consumer psychology studies, we’re more likely to part with money if it’s done through credit cards – an “invisible” transaction, so to speak – as opposed to cash, where the money is literally leaving our hands. This lower psychological impact drives up our willingness to give more to a hobo.

A thought for the bums of Penn (and I’m not referring to some of the guys who go here…kidding!): find some generous web designer who will make a website for you to get better financial results than traditional can-shaking in front of Mickey D’s.

Angela Hu Uncategorized bums, credit cards