Mental accounting, heuristics, and the second‐best: Solving the calculator‐jacket puzzle

<div><p>This paper conceives mental accounting along Kahneman's “mental economy,” specifically as a heuristic. This mental‐accounting‐as‐heuristic conception allows us to solve the calculator‐jacket puzzle. The opportunity cost of time is not constant but roughly varies with the var...

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Main Author: Elias L. Khalil (20518877) (author)
Published: 2024
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author Elias L. Khalil (20518877)
author_facet Elias L. Khalil (20518877)
author_role author
dc.creator.none.fl_str_mv Elias L. Khalil (20518877)
dc.date.none.fl_str_mv 2024-02-20T03:00:00Z
dc.identifier.none.fl_str_mv 10.1002/mde.4135
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Mental_accounting_heuristics_and_the_second_best_Solving_the_calculator_jacket_puzzle/25449433
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Commerce, management, tourism and services
Strategy, management and organisational behaviour
Mental accounting
heuristics
mental economy
calculator-jacket puzzle
decision maker (DM)
dc.title.none.fl_str_mv Mental accounting, heuristics, and the second‐best: Solving the calculator‐jacket puzzle
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <div><p>This paper conceives mental accounting along Kahneman's “mental economy,” specifically as a heuristic. This mental‐accounting‐as‐heuristic conception allows us to solve the calculator‐jacket puzzle. The opportunity cost of time is not constant but roughly varies with the variation of the item's value. As the value of the item rises, the decision maker (DM) should be more attentive. However, the measurement of the opportunity cost of time at each point of purchase is cognitively costly. To reduce such cost, the DM adopts a heuristic, the item's price itself, as a rough proxy of the varying opportunity cost of time.</p><p> </p></div><h2>Other Information</h2> <p> Published in: Managerial and Decision Economics<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1002/mde.4135" target="_blank">https://dx.doi.org/10.1002/mde.4135</a></p>
eu_rights_str_mv openAccess
id Manara2_550bc6ae850dcb520d83e716b40c73cb
identifier_str_mv 10.1002/mde.4135
network_acronym_str Manara2
network_name_str Manara2
oai_identifier_str oai:figshare.com:article/25449433
publishDate 2024
repository.mail.fl_str_mv
repository.name.fl_str_mv
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rights_invalid_str_mv CC BY 4.0
spelling Mental accounting, heuristics, and the second‐best: Solving the calculator‐jacket puzzleElias L. Khalil (20518877)Commerce, management, tourism and servicesStrategy, management and organisational behaviourMental accountingheuristicsmental economycalculator-jacket puzzledecision maker (DM)<div><p>This paper conceives mental accounting along Kahneman's “mental economy,” specifically as a heuristic. This mental‐accounting‐as‐heuristic conception allows us to solve the calculator‐jacket puzzle. The opportunity cost of time is not constant but roughly varies with the variation of the item's value. As the value of the item rises, the decision maker (DM) should be more attentive. However, the measurement of the opportunity cost of time at each point of purchase is cognitively costly. To reduce such cost, the DM adopts a heuristic, the item's price itself, as a rough proxy of the varying opportunity cost of time.</p><p> </p></div><h2>Other Information</h2> <p> Published in: Managerial and Decision Economics<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1002/mde.4135" target="_blank">https://dx.doi.org/10.1002/mde.4135</a></p>2024-02-20T03:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1002/mde.4135https://figshare.com/articles/journal_contribution/Mental_accounting_heuristics_and_the_second_best_Solving_the_calculator_jacket_puzzle/25449433CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/254494332024-02-20T03:00:00Z
spellingShingle Mental accounting, heuristics, and the second‐best: Solving the calculator‐jacket puzzle
Elias L. Khalil (20518877)
Commerce, management, tourism and services
Strategy, management and organisational behaviour
Mental accounting
heuristics
mental economy
calculator-jacket puzzle
decision maker (DM)
status_str publishedVersion
title Mental accounting, heuristics, and the second‐best: Solving the calculator‐jacket puzzle
title_full Mental accounting, heuristics, and the second‐best: Solving the calculator‐jacket puzzle
title_fullStr Mental accounting, heuristics, and the second‐best: Solving the calculator‐jacket puzzle
title_full_unstemmed Mental accounting, heuristics, and the second‐best: Solving the calculator‐jacket puzzle
title_short Mental accounting, heuristics, and the second‐best: Solving the calculator‐jacket puzzle
title_sort Mental accounting, heuristics, and the second‐best: Solving the calculator‐jacket puzzle
topic Commerce, management, tourism and services
Strategy, management and organisational behaviour
Mental accounting
heuristics
mental economy
calculator-jacket puzzle
decision maker (DM)