MENTAL ACCOUNTING AND THE PROCESS OF MULTIATTRIBUTE CHOICE

Tversky and Kahneman (1981) discussed how multiattribute choices may be framed in terms of alternative psychological accounts established for specific problems. They identified three levels of account: minimal, topical and comprehensive. The role of these mental accounts is investigated in two studies of Tversky and Kahneman's Jacket and Calculator problem. In the first, systematic variation of jacket and calculator prices showed that the latter had a large effect on choice, and the former a small but significant effect. It is concluded that: (1) the effect of the calculator price supports Tversky and Kahneman's view that people frame simple choices in terms of specific, topical accounts; and (2) the jacket price effect supports the view that more comprehensive mental accounts also influence evaluation and choice. In the second study, think aloud evidence is presented which supports these conclusions and indicates that the level of account adopted may be contingent on characteristics of the choice problem.