Deborah went to the casino with $1,000 and has managed to win an additional $500.At this point, she has $1,500 in her possession; however, she separates this money into $1,000 that she stores in her purse, and the remaining $500, which she continues to gamble with.Deborah's behavior illustrates the phenomenon of

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Deborah's behavior illustrates the phenomenon of mental accounting, where she is mentally separating her winnings into different categories based on how she intends to use them. She considers the $1,000 in her purse to be separate from the $500 she continues to gamble with, even though they are technically the same money.

Deborah Went to the Casino with $1,000 and Has Managed