Living Example of Mental Accounting

We are big fans of Harry Potter books and love seeing the movie version as well. Today was our movie day to see the The Deathly Hallows Part-1.

I am not the most spontaneous of human beings so I had the AMC discount tickets purchased at $7 a ticket. As you might know the rules of such tickets, these are not valid for the first two weeks of the movie unless you are willing to pay an additional $1.50.

I reasoned, the $21 I spent on pre-purchased discount tickets are sunk and the only decision was whether or not to spend the additional $4.50 to see the movie today. I decided to go any way to make use of the rare weekend break.

At the box office I found out that the tickets were actually $6 for the show time we went to. Regardless of that  low price, the kid at the box office said that if I wanted to use my discount ticket I still should pay $1.50 more per ticket.

The $7 tickets have unlimited life but can only be redeemed at AMC.

What is the rational move?

Pay just $4.5 and use the pre-paid discount tickets?  OR

Pay $18 and buy the ticket at current price?

4 thoughts on “Living Example of Mental Accounting

  1. Isn’t the already purchased discounted tix sunk cost. As such, shouldn’t you just pay 4.5$ instead of paying $18. Yes, you may watch another movie another time but I think it depends on how much is the opportunity cost for that extra (18-4.5) you intend to pay

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