Smash Notes
What Is Mental Accounting And Why Is It Important
Mental accounting is a behavioral economics term which states that treating money according to its source is irrational. Money you win and the money you have is all the same money.
However, if you treat the world as a series of bets on the condition of survival, then mental accounting is not just ration, but a necessity!
EconTalk
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Nassim Nicholas Taleb on Rationality, Risk, and Skin in the Game
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at 9:30
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·Transcript
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