9%2F16%2F19.docx - Mental Accounting Series of mental accounts(spare cash savings food etc Events are categorized relative to a particular account

9%2F16%2F19.docx - Mental Accounting Series of mental...

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Mental Accounting - Series of mental accounts (spare cash, savings, food, etc) - Events are categorized relative to a particular account Hedonic editing - We have control over how we perceive a combination of events Choice bracketing - We also have control over how events spread out over time are perceived - Delay between paying and consumption - Cost and benefits or losses and gains, diminish over time Do not Lie - The decision whether or not to lie has various moral, religious, and philosophical undertones - The does not stop it being crucial component in many economic interactions, however Lying and Deception - Heuristics often have an emotional, moral element to them - People show an aversion to telling lies - People show less aversion trying to deceive others. But, are still a lot more honest than the standard econ model predicts Theory summary - People use search heauristics to become informed - Choice can be arbitrary and depend on context - People focus on relative, not absolute outcomes, and are loss averse -
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