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What Happiness Research Can Tell Us About Self-Control Problems and Utility Misprediction

Author(s) / Creator(s)

Stutzer, Alois
Frey, Bruno S.

Abstract / Description

Neoclassical economic theory rules out systematic errors in consumption choice. According to the basic view, individuals know what they choose. They are able to predict how much utility an activity or a good produces for them now and in the future and they can maximize their utility. This implies that behavior reveals consistent preferences. This approach makes it impossible to detect and understand sub-optimal consumption decisions, due to problems of self-control and the misprediction of utility. We propose the economics of happiness as a methodological approach to study these phenomena. Based on proxy measures for experienced utility, it is, in principle, possible to directly address whether some observed behavior is sub-optimal and is therefore reducing a person's well-being. We discuss recent evidence on smoking and eating habits, TV viewing and commuting choice.

Keyword(s)

Anpassung Entscheidung Selbstkontrolle Zufriedenheit Nutzen Anpassung Entscheidung Selbstkontrolle Zufriedenheit Nutzen adaptation individual decision-making revealed preference self-control subjective well-being utility misprediction

Persistent Identifier

Date of first publication

2006

Is part of series

Forschungsinstitut zur Zukunft der Arbeit/ Institute for the Study of Labor: IZA Discussion Paper Series;1952

Citation

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  • Author(s) / Creator(s)
    Stutzer, Alois
  • Author(s) / Creator(s)
    Frey, Bruno S.
  • PsychArchives acquisition timestamp
    2022-11-17T11:05:09Z
  • Made available on
    2008-06-09
  • Made available on
    2015-12-01T10:32:13Z
  • Made available on
    2022-11-17T11:05:09Z
  • Date of first publication
    2006
  • Abstract / Description
    Neoclassical economic theory rules out systematic errors in consumption choice. According to the basic view, individuals know what they choose. They are able to predict how much utility an activity or a good produces for them now and in the future and they can maximize their utility. This implies that behavior reveals consistent preferences. This approach makes it impossible to detect and understand sub-optimal consumption decisions, due to problems of self-control and the misprediction of utility. We propose the economics of happiness as a methodological approach to study these phenomena. Based on proxy measures for experienced utility, it is, in principle, possible to directly address whether some observed behavior is sub-optimal and is therefore reducing a person's well-being. We discuss recent evidence on smoking and eating habits, TV viewing and commuting choice.
    en
  • Persistent Identifier
    https://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:bsz:291-psydok-16573
  • Persistent Identifier
    https://hdl.handle.net/20.500.11780/1116
  • Persistent Identifier
    https://doi.org/10.23668/psycharchives.9064
  • Language of content
    eng
  • Is part of
    IZA Discussion Paper Series No. 1952
  • Is part of series
    Forschungsinstitut zur Zukunft der Arbeit/ Institute for the Study of Labor: IZA Discussion Paper Series;1952
  • Keyword(s)
    Anpassung
    de
  • Keyword(s)
    Entscheidung
    de
  • Keyword(s)
    Selbstkontrolle
    de
  • Keyword(s)
    Zufriedenheit
    de
  • Keyword(s)
    Nutzen
    de
  • Keyword(s)
    Anpassung
    de
  • Keyword(s)
    Entscheidung
    de
  • Keyword(s)
    Selbstkontrolle
    de
  • Keyword(s)
    Zufriedenheit
    de
  • Keyword(s)
    Nutzen
    de
  • Keyword(s)
    adaptation
    en
  • Keyword(s)
    individual decision-making
    en
  • Keyword(s)
    revealed preference
    en
  • Keyword(s)
    self-control
    en
  • Keyword(s)
    subjective well-being
    en
  • Keyword(s)
    utility misprediction
    en
  • Dewey Decimal Classification number(s)
    150
  • Title
    What Happiness Research Can Tell Us About Self-Control Problems and Utility Misprediction
    en
  • DRO type
    report
  • Visible tag(s)
    PsyDok