Mental Accounting
- incl. mental budgeting (separation of monetary income into economic categories), labelling of income and assets, hedonic framing (evaluation of gains and loss combinations)
- violates the fungibility assumption of money: different propensities to use money depending on the source
- hampered by credit card use: decouples costs and benefits by facilitating mixing of purchases among budgeted categories and increasing temporal distance between purchases and payments (payment delayed until credit card bill is due)
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