Mental Accounting and Related Categorizations in the Context of Self - Regulation

Abstract

Purpose: The concept of mental accounting is part of a new scientific discipline that integrates insights psychology into the area of economic decision-making – behavioral economics. The problem of this research evolves around questions whether mental accounting is kind of universal process as well as around question whether the tendency for mental accounting serves as a function of different mind-sets – deliberative and implemental. The notion of different mind-sets comes from self-regulation theory of action phases and that in relation to goal setting and pre and post decision phase.

Design: All research questions are addressed in the experimental design, conducted on 200 participants. The tendency for mental accounting is measured using five hypothetical situations within context of different mind-sets.

Findings: The research showed that mental accounting is robust phenomenon, which might play a self-regulatory role in the context of saving decision making but not in the condition of experimentally induced manipulation but in the real world decision making.

Originality/Value: The usage of experimental design in analysis of mental accounting and related categorizations; Approach to mental accounting in the context of self-regulation theories