Kahneman, Daniel and Sugden, Robert (2005) Experienced utility as a standard of policy evaluation. Environmental and Resource Economics, 32 (1). pp. 161-181. ISSN 0924-6460
Full text not available from this repository. (Request a copy)Abstract
This paper explores the possibility of basing economic appraisal on the measurement of experienced utility (utility as hedonic experience) rather than decision utility (utility as a representation of preference). Because of underestimation of the extent of hedonic adaptation to changed circumstances and because of the "focusing illusion" (exaggerating the importance of the current focus of one's attention), individuals' forecasts of experienced utility are subject to systematic error. Such errors induce preference anomalies which the experienced utility approach might circumvent. The "day reconstruction method" of measuring experienced utility is considered as a possible alternative to stated preference methods.
Item Type: | Article |
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Uncontrolled Keywords: | contingent valuation,day reconstruction method,experienced utility,focusing illusion |
Faculty \ School: | Faculty of Social Sciences > School of Economics |
UEA Research Groups: | Faculty of Social Sciences > Research Centres > Centre for Competition Policy Faculty of Social Sciences > Research Groups > Economic Theory Faculty of Social Sciences > Research Groups > Behavioural Economics Faculty of Social Sciences > Research Centres > Centre for Behavioural and Experimental Social Sciences |
Related URLs: | |
Depositing User: | Pure Connector |
Date Deposited: | 19 Nov 2013 16:15 |
Last Modified: | 18 Apr 2023 23:43 |
URI: | https://ueaeprints.uea.ac.uk/id/eprint/44525 |
DOI: | 10.1007/s10640-005-6032-4 |
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