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Although Selye's theory about physiological stress reactions has been proven very useful, the theory is limited in that:
Mental Accounting
The tendency people have to create separate “mental boxes” (or “accounts”) in which they deal with particular financial transactions in isolation rather than dealing with them as part of an overall decision-making process that would consider how to best allocate their limited budgets across all possible options by using the utility-maximizing rule.
Overpriced Warranties
Service contracts sold at a price significantly higher than the expected cost of repairs, often criticized for their value relative to the benefits provided.
Losses
The negative financial result from business activities when costs exceed revenues.
Gains
Increases in economic benefits, such as profit, revenue, or utility, often resulting from investments, trade, or improvements in productivity.
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