Behavioral Economics: Mental Accounting among Teenagers

DOI

10.2991/aebmr.k.220405.055How to use a DOI?

Keywords

Behavioral Economics; Mental Accounting; Sunk Cost; Loss Aversion

Abstract

Mental accounting refers to the fact that people tend to code, categorize and evaluate activities when making decisions. While adults often use mental accounting as an effective decision-making tool, teenagers are still undergoing the process of cognitive development, and thus demonstrate different ways and strategies when using this tool to make decisions evolved sunk cost and loss. In this paper, we conduct an online questionnaire and compare the difference between teenagers’ and adults’ responses to each question. After analyzing the reason for these differences, some unique patterns are found in teenagers’ mental accounting processes. Specifically, more mobile and ambiguous accounts are likely to be presented in teenagers with larger investments in relationships. Some of those differences can be interpreted using interdisciplinary explanations.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Muqing Chen
PY  - 2022
DA  - 2022/04/29
TI  - Behavioral Economics: Mental Accounting among Teenagers
BT  - Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022)
PB  - Atlantis Press
SP  - 340
EP  - 344
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220405.055
DO  - 10.2991/aebmr.k.220405.055
ID  - Chen2022
ER  -