Malleable Mental Accounting - Cheema, Soman

Question 1

Mental accounting process

Answer 1

• self-regulatory mechanism
• budgetary role
• transaction specific accounts -> tracking costs and benefits to not waste prepayment and actually do consume

Question 2

Malleability

Answer 2

• flexibility in constructing mental accounts
• specific vs. general accounts
• flexibility in assigning expenses to categories
• depending on budget in accounts, expenses can be assigned to an account with budget surplus