A model of mental budgetingconsumer theory and inaccurate choice

Resumo

Commonly, Economic Theory assumes that money is fungible. However, evidence from Behavioral Economics (Thaler (1999), Shapiro and Hastings (2013)) indicates this assumption may fail in many behaviors. One possible explanation for this failure is the use of Mental Budgets, which indicates that people classify their money into expenditure categories. In this work, it is developed a theoretical model that captures the idea of Mental Budgeting and discuss the consequences of such assumption for the Consumer Theory. In addition, we highlight some behavioral observations of such agent. This creates new interpretations for some anomalies such as the Preference Reversal.

Ficha do documento

Tipo

Outro

Ano

2016

Instituição

Centro de Estudos em Finanças (GVcef)

Fonte

Repositório da FGV

Idioma

Inglês

Acesso

Acesso aberto

Identificador

oai:repositorio.fgv.br:10438/18912

Temas

Economia

Palavras-chave

Consumer theoryMental budgetingMental accountingEconomiaEconomia - Aspectos psicológicosFinanças pessoais - Aspectos psicológicosConsumo (Economia)