Positive Affect and Malleable Mental Accounting: An Investigation of the Role of Positive Affect in Flexible Expense Categorization and Spending

The present research examines the impact of positive affect on mental accounting and the underlying mechanisms. The authors find that individuals in a positive (vs. neutral) affective state are less likely to exploit ambiguity in mental accounts and justify spending, but only when processing resources are unconstrained. In contrast, when processing resources are limited (high cognitive load), those in a positive (vs. neutral) affective state are more likely to spend. These findings offer new insights into the interplay between affect and cognition in decision making, the use of mental accounting strategies, and the role of affect in spending and self‐control.