8 Examples of “Mental Accounting” and How to Avoid Them

Investors (like all humans) possess built-in mental “handicaps” that poison their decision-making. The sunk cost fallacy, hindsight bias, and anchoring are just a few of the most problematic. Yet perhaps even more troublesome than these errors is the phenomenon known as “mental accounting.” Mental accounting refers to the tendency of humans to develop and make […] The post 8 Examples of “Mental Accounting” and How to Avoid Them appeared first on The College Investor .