Do People Seek to Maximize Happiness? Evidence from New Surveys
48 Pages Posted: 25 Oct 2010 Last revised: 29 Oct 2010
Date Written: October 2010
Abstract
Are subjective well-being (SWB) measures a good empirical proxy for utility? We evaluate one necessary assumption: that people's preferences coincide with what they predict will maximize their SWB. Our method is to present survey respondents with hypothetical scenarios and elicit both choice and predicted SWB rankings of two alternatives. While choice and predicted SWB rankings usually coincide, we find systematic reversals. Furthermore, we identify factors--such as predicted sense of purpose, control over one's life, family happiness, and social status--that help explain choice controlling for predicted SWB. We explore how our findings vary with the SWB measure and the choice situation.
Suggested Citation: Suggested Citation
Daniel J. Benjamin (Contact Author)
USC, Center for Economic and Social Research (CESR) ( email )
635 Downey Way
Los Angeles, CA 90089-3332
United States
Ori Heffetz
Cornell University - S.C. Johnson Graduate School of Management ( email )
324 Sage Hall
Ithaca, NY 14853
United States
Center for Economic and Social Research, USC ( email )
635 Downey Way
Los Angeles, CA 90089-3332
United States
Alex Rees-Jones
University of Pennsylvania - Operations & Information Management Department ( email )
Philadelphia, PA 19104
United States
HOME PAGE: http://https://opimweb.wharton.upenn.edu/profile/26948/
