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Suboptimal choices and the need for experienced individual well-being in economic analysis

Hsee, Christopher K. and Rottenstreich, Yuval and Stutzer, Alois. (2012) Suboptimal choices and the need for experienced individual well-being in economic analysis. International journal of happiness and development, 1 (1). pp. 63-85.

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Official URL: http://edoc.unibas.ch/dok/A6056090

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Abstract

Standard economic analysis assumes that people make choices that maximise their utility. Yet both popular discourse and other fields assume that people sometimes fail to make optimal choices and thus adversely affect their own happiness. Most social sciences thus frequently describe some patterns of decision as suboptimal. We review evidence of suboptimal choices that arise for two reasons. First, people err in predicting the utility they may accrue from available choice options due to the evaluation mode. Second, people choose on the basis of salient rules that are unlikely to maximise utility. Our review is meant to highlight the possibility of a research programme that combines economic analysis with measures of individuals’ experienced well-being to improve people’s happiness.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Politische Ökonomie (Stutzer)
UniBasel Contributors:Stutzer, Alois
Item Type:Article, refereed
Article Subtype:Research Article
Bibsysno:Link to catalogue
Publisher:Inderscience Publishers
ISSN:2049-2790
Note:Publication type according to Uni Basel Research Database: Journal article
Language:English
Identification Number:
Last Modified:01 Jun 2018 14:34
Deposited On:01 Mar 2013 11:09

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