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Mental Accounting and the Absentminded Driver

Author

Listed:
  • Gilboa, I.
  • Gilboa-Schechtman, E.

Abstract

There is a broad range of phenomena that are categorized as "mental accounting". Some of these phenomena may be viewed as situations in which a person evaluates decisions based on the implicit assumption that the decision she makes at a given moment will be repeated many times in the future. For example, people find it easier to spend windfall profits than they do regular income.

Suggested Citation

  • Gilboa, I. & Gilboa-Schechtman, E., 2001. "Mental Accounting and the Absentminded Driver," Papers 2001-20, Tel Aviv.
  • Handle: RePEc:fth:teavfo:2001-20
    as

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    More about this item

    Keywords

    INCOME ; MONEY ; ACCOUNTING;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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