Discuss a setting other than spending out of SNAP or buying gasoline (which we covered extensively...

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Discuss a setting other than spending out of SNAP or buying gasoline (which we covered extensively in class) in which you think mental accounting might affect how individuals make decisions. Sketch how you might go about providing evidence for mental accounting, taking care to differentiate it from income effects and other neoclassical explanations (e.g., through surveys, experiments or regressions using naturally occurring variation). Discuss a setting other than spending out of SNAP or buying gasoline (which we covered extensively in class) in which you think mental accounting might affect how individuals make decisions. Sketch how you might go about providing evidence for mental accounting, taking care to differentiate it from income effects and other neoclassical explanations (e.g., through surveys, experiments or regressions using naturally occurring variation).

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Answer One setting where mental accounting might affect decisionmaking is in the context of savings and investment choices Mental accounting refers to ... View the full answer