More generally, a mental accounting cost or mental transaction cost, a kind of transaction cost, is the cost of making a useful decision, especially of a consumer making a useful decision to buy, and may set a lower bound on useful price granularity in a market.
Read more about this topic: Mental Accounting
Famous quotes containing the words mental, accounting and/or cost:
“Industrial man—a sentient reciprocating engine having a fluctuating output, coupled to an iron wheel revolving with uniform velocity. And then we wonder why this should be the golden age of revolution and mental derangement.”
—Aldous Huxley (1894–1963)
“At the crash of economic collapse of which the rumblings can already be heard, the sleeping soldiers of the proletariat will awake as at the fanfare of the Last Judgment and the corpses of the victims of the struggle will arise and demand an accounting from those who are loaded down with curses.”
—Karl Liebknecht (1871–1919)
“History is strewn with the wrecks of nations which have gained a little progressiveness at the cost of a great deal of hard manliness, and have thus prepared themselves for destruction as soon as the the movements of the world gave a chance for it.”
—Walter Bagehot (1826–1877)