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
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: Suggested Citation