Summary lecture 4

Hi guys, this so far unnamed lecture touched upon the Subjectivity of Money, the importance of Roles and Mental Accounting.
Some key lessons:

Decision processes can be manipulated by:

• Using high or low reference points (anchoring)
• Framing decisions as losses or gains
• People are more loss-averse than gain-seeking
  

Below you will find an interesting lecture by Richard Thaler, the person who pioneered theory on mental accounting.