Mental Accounting: New Challenge on Financial Management Classic Models

Subject Areas : Management Accounting

Esmail moshiri ¹ , Arezooi jalil ²

1 - ندارد
2 - نویسنده مسئول و طرف مکاتبه

Received: 2009-08-11 Accepted : 2009-12-12 Published : 2009-10-23

Keywords: mental accounting, Economic Man, Social Man, Administrative Man, Judgmental Heurist Biased Mode, framing,

Abstract :

In this article, that part of assumption of “non behavioral economic”- which deals with: unbounded rationality, unlimited self control and maximum fulfillment of desires-, which in turn paves the way to so called “economic man”, is challenged. Several implication and critics are addressed in this regard. In continuation a new approach which is literally called “social man” is adapted. Since “economic man” and “social man” are two abstract extremes of continuum, alternatively and to adapt to reality two practice models; namely: “administrative man” and “judgmental heurist biased model” are presented. Mental accounting is a natural outcome of integration of the two above mentioned models. This concept is defined, several implications are addressed, and finally some functions and applications is economic, finance, and individual judgments are discussed