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545
The Hedonistic Paradox: Is homo economicus happier?
, 2008
"... The “Hedonistic Paradox” states that homo economicus, or someone who seeks happiness for him- or herself, will not find it, but the person who helps others will. This study examines two questions in connection with happiness and generosity. First, do more generous people, as identified in dictator e ..."
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Cited by 57 (0 self)
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The “Hedonistic Paradox” states that homo economicus, or someone who seeks happiness for him- or herself, will not find it, but the person who helps others will. This study examines two questions in connection with happiness and generosity. First, do more generous people, as identified in dictator experiments, report on average greater happiness, or subjective well-being (SWB), as measured by responses to various questionnaires? Second, if the answer is affirmative, what is the causal relationship between generosity and happiness? We find a favorable correlation between generosity and happiness (i.e., SWB is directly related to several measures of happiness and inversely related to unhappiness) and examine various possible explanations, including that material well-being causes both happiness and generosity. The evidence from this experiment, however, indicates that a tertiary personality variable, sometimes called psychological well-being, is the primary cause of both happiness and greater generosity. In contrast to field studies, the experimental method of this inquiry permits anonymity measures designed to minimize subject misrepresentation of intrinsic generosity (e.g., due to social approval motives) and of actual happiness (e.g., because of social desirability biases) and produces a rich data set with multiple measures of subjective, psychological and material well-being. The results of this and other studies raise the question of whether greater attention should be paid to the potential benefits (beyond solely the material
Distinction Bias: Misprediction and Mischoice Due to Joint Evaluation
"... This research identifies a new source of failure to make accurate affective predictions or to make experientially optimal choices. When people make predictions or choices, they are often in the joint evaluation (JE) mode; when people actually experience an event, they are often in the single evaluat ..."
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Cited by 48 (10 self)
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This research identifies a new source of failure to make accurate affective predictions or to make experientially optimal choices. When people make predictions or choices, they are often in the joint evaluation (JE) mode; when people actually experience an event, they are often in the single evaluation (SE) mode. The “utility function ” of an attribute can vary systematically between SE and JE. When people in JE make predictions or choices for events to be experienced in SE, they often resort to their JE preferences rather than their SE preferences and overpredict the difference that different values of an attribute (e.g., different salaries) will make to their happiness in SE. This overprediction is referred to as the distinction bias. The present research also specifies when the distinction bias occurs and when it does not. This research contributes to literatures on experienced utility, affective forecasting, and happiness. Suppose that a person is faced with two job offers. She finds one job interesting and the other tedious. However, the interesting job will pay her only $60,000 a year, and the tedious job will pay her $70,000 a year. The person wants to choose the job that will give her the greatest overall happiness. To make that choice, she tries to predict the difference in happiness between earning $60,000 a year
Do You Enjoy Having More Than Others? Survey Evidence of Positional Goods
, 2003
"... Although conventional economic theory proposes that only the absolute levels of income and consumption matter for people’s utility, there is much evidence that relative concerns are often important. This paper uses a survey-experimental method to measure people’s perceptions of the degree to which s ..."
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Cited by 45 (16 self)
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Although conventional economic theory proposes that only the absolute levels of income and consumption matter for people’s utility, there is much evidence that relative concerns are often important. This paper uses a survey-experimental method to measure people’s perceptions of the degree to which such concerns matter, i.e. the degree of positionality. Based on a representative sample in Sweden, income and cars are found to be highly positional, on average. This is in contrast to leisure and car safety, which may even be completely non-positional.
Direct Evidence on Income Comparison and their Welfare Effects
- Journal of Economic Behavior and Organization
, 2009
"... policy, but the institute itself takes no institutional policy positions. ..."
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Cited by 43 (5 self)
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policy, but the institute itself takes no institutional policy positions.
Using Panel Data on Income Satisfaction to Estimate Equivalence Scale Elasticity
, 2003
"... In this paper, the equivalence scale elasticity will be estimated by using individual panel data on income satisfaction from the German Socio-Economic Panel Study (GSOEP). Satisfaction or happiness data have been more frequently used by economists in recent years to analyze individual well-being. Th ..."
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Cited by 41 (7 self)
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In this paper, the equivalence scale elasticity will be estimated by using individual panel data on income satisfaction from the German Socio-Economic Panel Study (GSOEP). Satisfaction or happiness data have been more frequently used by economists in recent years to analyze individual well-being. The approach differs from other subjective approaches as respondents are requested to evaluate current income rather than income in hypothetical situations. The estimated scale elasticity is higher as compared to those from other subjective approaches based on German data. In addition, panel data enables different scale use by the respondents to be controlled. It can be shown, that elasticity decreases when unobserved fixed-effects are controlled for.
2009), Homo reciprocans: survey evidence on behavioral outcomes
- Economic Journal
"... results available for discussion, before those results are submitted for publication in journals. ..."
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Cited by 40 (8 self)
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results available for discussion, before those results are submitted for publication in journals.
The Road not Taken: How Psychology was Removed from Economics, and how it Might be
- Brought Back.” The Economic Journal
, 2007
"... This article explores parallels between the debate prompted by Pareto’s reformulation of choice theory at the beginning of the twentieth century and current controversies about the status of behavioural economics. Before Pareto’s reformulation, neoclassical economics was based on theor-etical and ex ..."
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Cited by 35 (0 self)
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This article explores parallels between the debate prompted by Pareto’s reformulation of choice theory at the beginning of the twentieth century and current controversies about the status of behavioural economics. Before Pareto’s reformulation, neoclassical economics was based on theor-etical and experimental psychology, as behavioural economics now is. Current discovered prefer-ence defences of rational-choice theory echo arguments made by Pareto. Both treat economics as a separate science of rational choice, independent of psychology. Both confront two fundamental problems: to find a defensible definition of the domain of economics, and to justify the assumption that preferences are consistent and stable. One of the most significant developments in economics over the last two decades has been the growth of behavioural economics, which draws on the theoretical and methodological approaches of psychology in explaining economic phenomena. Behavioural economists take pride in grounding their explanations on empirical hypotheses about how human beings really think and act, rather than on deductions from a priori assumptions about rational choice, and in subjecting those hypotheses to experimental test. Viewed in historical perspective, behavioural economists are trying
From Tallest to (one of) the Fattest: the Enigmatic Fate of American Population
- in the 20th Century.” Economics and Human Biology
, 2004
"... • from the CESifo website: www.CESifo.de ..."
Happiness Research: State and Prospects
- INSTITUTE FOR EMPIRICAL RESEARCH IN ECONOMICS.’ WORKING PAPER
, 2005
"... This paper intends to provide an evaluation of where the economic research on happiness stands and in which interesting directions it might develop. First, the current state of the research on happiness in economics is briefly discussed. We emphasize the potential of happiness research in testing co ..."
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Cited by 34 (1 self)
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This paper intends to provide an evaluation of where the economic research on happiness stands and in which interesting directions it might develop. First, the current state of the research on happiness in economics is briefly discussed. We emphasize the potential of happiness research in testing competing theories of individual behavior. Second, the crucial issue of causality is taken up illustrating it for a particular case, namely whether marriage makes people happy or whether happy people get married. Third, happiness research is taken up as a new approach to measuring utility in the context of cost-benefit analysis.
