Mental accounting in decision-making for self versus others.

Abstract

Previous studies have commonly used the third-person format to explore the generality of mental accounting and have observed the mental accounting effect when people predict others’ behavior. However, little is known about whether the mental accounting effect can be observed when people make decisions for others. We conducted 2 studies to investigate this issue. In Study 1, participants were asked to read all A or B scenarios for 3 modified mental accounting problems (the movie ticket problem, the sneaker and umbrella problem, and the basketball game problem) and to make decisions for themselves or for others. The results showed that the mental accounting effect appeared only when the participants made decisions for themselves and not when they made decisions for others. In Study 2, we directly manipulated the self–other intimate relationship (close other vs. distant other) and asked the participants to make decisions for different others in the 3 modified problems. The results showed that regardless of whether the other was socially close or distant, the mental accounting effect was not observed. Taken together, our results extend the findings on mental accounting and indicate that it may cease to apply when individuals make decisions for others.

Effects of mental accounting on purchase decision processes: A systematic review and research agenda

“…Studies (Z. Liu et al, 2017; C. Liu et al, 2018) show that consumers mentally differentiate between money and spending that is relevant to themselves or to others. In general, MA effects seem to be weaker when individuals make decisions for others, regardless of whether the other person is socially close or distant (Z. Liu et al, 2017). A study by C. Liu et al (2018) shows that the source of funds can also have an effect on how self‐relevant purchases are.…”

“…Studies (Z. Liu et al, 2017;C. Liu et al, 2018) show that consumers mentally differentiate between money and spending that is relevant to themselves or to others.…”

“…In general, MA effects seem to be weaker when individuals make decisions for others, regardless of whether the other person is socially close or distant (Z. Liu et al, 2017). A study by C. shows that the source of funds can also have an effect on how self-relevant purchases are.…”

Risk preferences in self–other decisions: The effect of payoff allocation framing

“…Individuals make financial decisions for themselves and for others. A growing body of literature on self–other discrepancies has suggested that decision makers (i.e., people who make decisions) perform differently when they decide for others rather than for themselves (e.g., Y. Liu, Polman, Liu, & Jiao, 2018; Z. Liu, Liu, & Mu, 2017; Lu, Jia, Xie, & Wang, 2016; Lu & Xie, 2014; Lu, Xie, & Xu, 2012; Polman, 2012; Polman & Vohs, 2016; Tunney & Ziegler, 2015). A decision target (i.e., whether the decision is made for oneself or others) influences decision makers' behaviors (Lu et al, 2012), especially on risk‐related decisions (e.g., Andersson, Holm, Tyran, & Wengström, 2016; Polman & Wu, 2020; Stone & Allgaier, 2008; Sun, Liu, Zhang, & Lu, 2016).…”

“…A growing body of literature on self-other discrepancies has suggested that decision makers (i.e., people who make decisions) perform differently when they decide for others rather than for themselves (e.g., Y. Liu, Polman, Liu, & Jiao, 2018;Z. Liu, Liu, & Mu, 2017;Lu, Jia, Xie, & Wang, 2016;Lu & Xie, 2014;Lu, Xie, & Xu, 2012;Polman, 2012;Polman & Vohs, 2016;Tunney & Ziegler, 2015).…”