Economic Consequences of Mispredicting Utility

Research Database / FORSCHUNGSDATENBANK

Publication 2172072 | Verified

Data Entry: Please note that the research database will be replaced by UNIverse by the end of October 2023. Please enter your data into the system https://universe-intern.unibas.ch. Thanks

Login for users with Unibas email account...

Login for registered users without Unibas email account...

Economic Consequences of Mispredicting Utility

JournalArticle (Originalarbeit in einer wissenschaftlichen Zeitschrift)

ID	2172072
Author(s)	Frey, Bruno S.; Stutzer, Alois
Author(s) at UniBasel	Stutzer, Alois
Year	2014
Year: comment	Forthcoming
Title	Economic Consequences of Mispredicting Utility
Journal	Journal of Happiness Studies
Volume	15
Number	4
Pages / Article-Number	937-956
Abstract	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.
Publisher	Springer
ISSN/ISBN	1389-4978 ; 1573-7780
edoc-URL	http://edoc.unibas.ch/39282/
Full Text on edoc	Available
Digital Object Identifier DOI	10.1007/s10902-013-9457-4
ISI-Number	000340399200011
Document type (ISI)	Article

06/05/2024

Research Database / FORSCHUNGSDATENBANK