Fallacies and Biases
Mental accounting is subject to many logical fallacies and cognitive biases.
For example, people behave differently when they are using credit card and cash. If they use credit card to pay for a bet, they will tend to bet larger than if they use cash. This shows how people uses mental accounting to treat money as if they are not the same when it's in the form of credit card and cash.
Read more about this topic: Mental Accounting
Famous quotes containing the word biases:
“A critic is a bundle of biases held loosely together by a sense of taste.”
—Whitney Balliet (b. 1926)