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Sort of behaviour consistent with mainstream economics

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Some companies pay annual bonuses to their employees when specific company goals have been met. There is evidence that many employees spend their bonus money more lavishly than their base salary. For example, they often spend their bonus money on new cars, fancy clothes, and exotic vacations, whereas they would never do so with their "regular" income.

Is this sort of behaviour consistent with mainstream economics? From the perspective of behavioural finance, what behavioural bias(es) can explain this kind of behaviour? Explain your logic in detail

Reference no: EM133116837

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