Related Experiment Videos
Mental accounting and the process of multiattribute choice
1Bolton Institute of Higher Education, Division of Psychology and Biology, UK.
Acta Psychologica
|November 1, 1993
Summary
This study explores how people frame choices using mental accounts. Findings show that calculator price significantly impacts decisions, supporting topical accounts, while jacket price influences choices through comprehensive accounts.
Area of Science:
- Cognitive Psychology
- Behavioral Economics
Background:
- Tversky and Kahneman (1981) proposed mental accounting with minimal, topical, and comprehensive levels.
- Understanding how these mental accounts influence decision-making is crucial.
Purpose of the Study:
- To investigate the role of mental accounts in multiattribute choices.
- To examine Tversky and Kahneman's "Jacket and Calculator" problem using price variations.
Main Methods:
- Two studies were conducted, systematically varying prices of a jacket and a calculator.
- The second study utilized think-aloud protocols to gather qualitative evidence.
Main Results:
- Calculator price had a significant effect on choice, supporting the "topical account" theory.
- Jacket price also influenced choice, albeit to a lesser extent, supporting "comprehensive accounts."
- Think-aloud data indicated that the level of mental account used is context-dependent.
Conclusions:
- People utilize topical mental accounts for simple choices, as demonstrated by the calculator price effect.
- Comprehensive mental accounts also play a role in evaluating and making complex decisions, as shown by the jacket price effect.
- The specific mental account adopted in decision-making can be influenced by the characteristics of the choice problem.