mental accounting ↔ Loss aversion

Relations (1)

related 2.32 — strongly supporting 4 facts

Loss aversion and mental accounting are both categorized as core behavioral biases that influence financial decision-making, as evidenced by their inclusion in the same psychological frameworks [1], [2], [3], and [4].

Facts (4)

Sources

The Influence of Behavioral Biases on Investment Decisions jmsr-online.com Journal of Management and Strategy Research 2 facts

referenceThe conceptual model of retail investor psychology identifies five core behavioral biases: overconfidence, loss aversion, herd behavior, anchoring, and mental accounting.

claimThe conceptual paper 'The Influence of Behavioral Biases on Investment Decisions' examines the influence of overconfidence, loss aversion, herd behavior, mental accounting, and anchoring on the decision-making processes of retail investors.

Biases in Behavioral Finance - World Scholars Review worldscholarsreview.org Daria Azhyshcheva, Vi Dinh, Aanya Gothal, Abhinav Sisodiya · World Scholars Review 1 fact

claimEmotional biases, such as herding bias, loss aversion, house money effect, mental accounting, recency bias, regret aversion bias, framing effect, hindsight bias, representative bias, and the endowment effect, are driven by feelings and emotions.

Psychology Of Financial Decision-Making - Meegle meegle.com Meegle 1 fact

claimKey principles of the psychology of financial decision-making include cognitive biases (systematic errors in thinking like overconfidence, loss aversion, and anchoring), emotional influences (the role of fear, greed, and regret), social norms (the impact of societal expectations and peer behavior), and mental accounting (the tendency to categorize money into different accounts based on subjective criteria).