Categories
Learnings Mental Models

The Hidden Pitfalls of Mental Accounting: Unraveling the Decision-Making Fallacy

Introduction In the intricate landscape of decision-making, the mental model of mental accounting holds a crucial role. Mental accounting refers to the tendency of individuals to compartmentalize and assign different values to money, resources, and investments based on subjective factors. Anchored in human psychology, this mental model sheds light on how our financial and non-financial […]