The role of mental accounting in risk-taking and spending: a meta-analysis of the house-money effect
IntroductionThis study systematically analyzes the house-money effect, a phenomenon in which people become more financially risk-taking and wasteful after receiving unexpected income. It aims to identify the general tendencies and factors that influence this effect, because the results reported in p...
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Frontiers Media S.A.
2025-07-01
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| Series: | Frontiers in Psychology |
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| Online Access: | https://www.frontiersin.org/articles/10.3389/fpsyg.2025.1549626/full |
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| author | Kasumi Dan |
| author_facet | Kasumi Dan |
| author_sort | Kasumi Dan |
| collection | DOAJ |
| description | IntroductionThis study systematically analyzes the house-money effect, a phenomenon in which people become more financially risk-taking and wasteful after receiving unexpected income. It aims to identify the general tendencies and factors that influence this effect, because the results reported in previous studies are inconsistent.MethodA total of 36 eligible studies with 57 continuous and 18 binary outcome effect sizes were included in this meta-analysis. A random-effects model was used to pool the effect sizes.ResultsA low-to-moderate house-money effect (g = 0.37, rr = 1.33) was confirmed. However, high heterogeneity was observed, and the strength of the house-money effect varied widely, depending on the situation. The subgroup and meta-regression analyses revealed several moderators. While a strong effect was observed in the controlled experimental environment, the effect was weakened when it was closer to a real-world environment. For continuous outcomes, the effect was particularly pronounced in students and Asian regions, and the effect size decreased as the publication year increased, suggesting the limited universality of the house-money effect. In the publication-bias analysis, a slight bias was detected using multiple methods.DiscussionThis suggests that the true effect size may be smaller, supporting the theory that the house-money effect is reproducible only under certain conditions. |
| format | Article |
| id | doaj-art-9c2128d232fa4e048c7ebc45bc5b9ad5 |
| institution | DOAJ |
| issn | 1664-1078 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | Frontiers Media S.A. |
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| series | Frontiers in Psychology |
| spelling | doaj-art-9c2128d232fa4e048c7ebc45bc5b9ad52025-08-20T02:44:23ZengFrontiers Media S.A.Frontiers in Psychology1664-10782025-07-011610.3389/fpsyg.2025.15496261549626The role of mental accounting in risk-taking and spending: a meta-analysis of the house-money effectKasumi DanIntroductionThis study systematically analyzes the house-money effect, a phenomenon in which people become more financially risk-taking and wasteful after receiving unexpected income. It aims to identify the general tendencies and factors that influence this effect, because the results reported in previous studies are inconsistent.MethodA total of 36 eligible studies with 57 continuous and 18 binary outcome effect sizes were included in this meta-analysis. A random-effects model was used to pool the effect sizes.ResultsA low-to-moderate house-money effect (g = 0.37, rr = 1.33) was confirmed. However, high heterogeneity was observed, and the strength of the house-money effect varied widely, depending on the situation. The subgroup and meta-regression analyses revealed several moderators. While a strong effect was observed in the controlled experimental environment, the effect was weakened when it was closer to a real-world environment. For continuous outcomes, the effect was particularly pronounced in students and Asian regions, and the effect size decreased as the publication year increased, suggesting the limited universality of the house-money effect. In the publication-bias analysis, a slight bias was detected using multiple methods.DiscussionThis suggests that the true effect size may be smaller, supporting the theory that the house-money effect is reproducible only under certain conditions.https://www.frontiersin.org/articles/10.3389/fpsyg.2025.1549626/fullmental accountinghouse-money effectwindfallrisk takingdecision makingsystematic review |
| spellingShingle | Kasumi Dan The role of mental accounting in risk-taking and spending: a meta-analysis of the house-money effect Frontiers in Psychology mental accounting house-money effect windfall risk taking decision making systematic review |
| title | The role of mental accounting in risk-taking and spending: a meta-analysis of the house-money effect |
| title_full | The role of mental accounting in risk-taking and spending: a meta-analysis of the house-money effect |
| title_fullStr | The role of mental accounting in risk-taking and spending: a meta-analysis of the house-money effect |
| title_full_unstemmed | The role of mental accounting in risk-taking and spending: a meta-analysis of the house-money effect |
| title_short | The role of mental accounting in risk-taking and spending: a meta-analysis of the house-money effect |
| title_sort | role of mental accounting in risk taking and spending a meta analysis of the house money effect |
| topic | mental accounting house-money effect windfall risk taking decision making systematic review |
| url | https://www.frontiersin.org/articles/10.3389/fpsyg.2025.1549626/full |
| work_keys_str_mv | AT kasumidan theroleofmentalaccountinginrisktakingandspendingametaanalysisofthehousemoneyeffect AT kasumidan roleofmentalaccountinginrisktakingandspendingametaanalysisofthehousemoneyeffect |