Dimensions of mental accounting,it's roots and Applications

Most economic theories accordingly have been established in the face of rational decision making and all information contained in their evaluation process. Study of Decision-making behavior of individuals in different researches led to doubt these theories and show that in most cases, people do not behave in a logical way. One theory that has been proposed to explain the unreasonable behavior of people in decision-making is mental accounting theory. Based on this theory, people loses a grand look to the set of their investment And tries to balance between time of enjoying of investment and the pain of paying. This theory suggests that people, separate budgets for their necessary expenses and unnecessary amount of profits according to the source of it. In this paper we attempt to explain the various aspects of mental accounting and it’s roots, applications and researches are needed in this area.