MENTAL ACCOUNTING
10 important questions on MENTAL ACCOUNTING
Framing outcomes: what is minimal account?
Framing outcomes: what is topical account?
Framing outcomes: what is Comprehensive account
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
Hedonic editing: How does someone wish to frame receipt of multiple outcomes?
• Integrate losses
• Integrate smaller losses with larger gains
• Segregate small gains from larger losses
What is Mental accounting decision making?
– How decisions are made and then evaluated
What is Choice bracketing and dynamic mental accounting?
– Accounts balanced daily-weekly-yearly… Accounts narrowly/broadly defined (“bracket”)
What is the Acquisition utility?
What is Transaction utility?
What is the DISPOSITION EFFECT?
– As people dislike incurring losses much more than they enjoy making gains, and people are willing to gamble in the domain of losses, investors will hold onto stocks that have lost value and will be eager to sell stocks that have risen in value
What is the sunk cost effect?
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding