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Internal and Substantive Inconsistencies In Decision-Making

BLACKWELL HANDBOOK OF JUDGEMENT AND DECISION MAKING, D. Koehler, N. Harvey, eds., Oxford: Blackwell, 2004

30 Pages Posted: 11 Oct 2006  

Christopher K. Hsee

University of Chicago - Booth School of Business

Jiao Zhang

University of Chicago - Booth School of Business

Abstract

Most behavioral decision studies are about internal inconsistencies of decisions - that decisions (choices or judgments) made in one condition are different from decisions made in an apparently different but normatively equivalent condition. The present article reviews behavioral decision studies that suggest a more substantive inconsistency - that decisions apparently made to maximize happiness (experienced utility) do not maximize happiness.

Keywords: rationality, utility function, evaluability, experienced utility, affective-forecasting, decision, lay rationalism, happiness

JEL Classification: D81, D11, D12, D91

Suggested Citation

Hsee, Christopher K. and Zhang, Jiao, Internal and Substantive Inconsistencies In Decision-Making. BLACKWELL HANDBOOK OF JUDGEMENT AND DECISION MAKING, D. Koehler, N. Harvey, eds., Oxford: Blackwell, 2004. Available at SSRN: https://ssrn.com/abstract=929939

Christopher K. Hsee (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Jiao Zhang

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

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