Psychology: Mental Accounting (Tversky, Kahnemann) - Part 1

In real life most of us usually have only one or two accounts at the
bank.
According to the Nobel laureates Tversky and Kahnemann the situation in our mind is quite different:

They assume that we have mental accounts for all the different areas of life (vacation, education, entertainment, etc.). On the one hand these mental accounts allow us to save money for longterm goals (e.g. the leave account). On the other hand mental accounting can also be exploited deliberately by marketing experts and sales people...

Author: Eskil Burck (degreed psychologist)

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