Economic Consequences of Mispredicting Utility

Journal of Happiness Studies - Tập 15 - Trang 937-956 - 2013
Bruno S. Frey1,2, Alois Stutzer3,2
1Department of Economics, University of Zurich, Zurich, Switzerland
2CREMA—Center for Research in Economics, Management and the Arts, Basel, Switzerland
3Faculty of Business and Economics, University of Basel, Basel, Switzerland

Tóm tắt

In a simple conceptual framework, we organize a multitude of phenomena related to the (mis)prediction of utility. Consequences in terms of distorted choices and lower well-being emerge if people have to trade-off between alternatives that are characterized by attributes satisfying extrinsic desires and alternatives serving intrinsic needs. Thereby the neglect of asymmetries in adaptation is proposed as an important driver. The theoretical analysis is consistent with econometric evidence on commuting choice using data on subjective well-being. People show substantial adaptation to a higher labor income but not to commuting. This may account for the finding that people are not compensated for the burden of commuting.

Tài liệu tham khảo

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