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Mental Accounting—Saving with Virtual Shoeboxes

  • Chinmayi SrikanthEmail author
  • Ketan Reddy
  • S. Raja Sethu Durai
Chapter

Abstract

People find themselves falling prey to excessive spending tendencies despite their continued efforts to prevent the same from happening. The paper analyzes the viability of applying the concept of ‘mental accounting’ in the operation of bank accounts so as to enable people to monitor their expenditure with greater accuracy.

Keywords

Mental accounting Nudge Decision points Savings Sub-accounts 

References

  1. Soman, D., Xu, J., and Cheema, A. (2010). Decision Points: A Theory Emerges. Rotman Magaine Winter.Google Scholar
  2. Thaler, R. H. (1999). Mental accounting matters. Journal Of Behavioral Decision Making, 12, 183–206.CrossRefGoogle Scholar
  3. Thaler, R. H., Sunstein, C. R. (2008). Nudge improving decisions about health, wealth, and happiness. Yale University Press.Google Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  • Chinmayi Srikanth
    • 1
    Email author
  • Ketan Reddy
    • 2
  • S. Raja Sethu Durai
    • 3
  1. 1.Indian Institute of ManagementKozhikodeIndia
  2. 2.Department of Humanities and Social SciencesIIT MadrasChennaiIndia
  3. 3.School of EconomicsUniversity of HyderabadHyderabadIndia

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