Open AccessPosted Content
Happiness and Time Allocation
Manel Baucells,Rakesh K. Sarin +1 more
- 01 Jun 2007
TL;DR: In this article, the authors consider a resource allocation problem in which time is the principal resource and utility is derived from time-consuming leisure activities, as well as from consumption, and examine the impact of projection bias on time allocation between work and leisure.
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Abstract: We consider a resource allocation problem in which time is the principal resource. Utility is derived from time-consuming leisure activities, as well as from consumption. To acquire consumption, time needs to be allocated to income generating activities (i.e., work). Leisure (e.g., social relationships, family and rest) is considered a basic good, and its utility is evaluated using the Discounted Utility Model. Consumption is adaptive and its utility is evaluated using a reference-dependent model. Key empirical findings in the happiness literature can be explained by our time allocation model. Further, we examine the impact of projection bias on time allocation between work and leisure. Projection bias causes individuals to overrate the utility derived from income; consequently, individuals may allocate more than the optimal time to work. This misallocation may produce a scenario in which a higher wage rate results in a lower total utility.
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Citations
The Conquest of Happiness
TL;DR: In this article, the authors present a practical guide to not being miserable, starting with the causes of unhappiness, proceeding to the causes for happiness, and ending with the happy man.
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•Posted Content
Predicting utility under satiation and habituation
Manel Baucells,Rakesh K. Sarin +1 more
- 01 Jan 2007
TL;DR: In this article, a modification of the discounted utility model that accounts for both habituation and satiation in intertemporal choice is introduced, and the authors argue that projection bias and narrow bracketing successfully explain the hedonic treadmill.
5
A kivetítési torzítás mint a fogyasztói hasznosságot befolyásoló döntési hiba = Projection bias as a decision bias influencing consumer utility
Kármen Kovács
- 03 Apr 2020
TL;DR: In this article, the authors investigate which and how factors influence the estimation of future preferences, furthermore what can cause their change during the period between the decision and the consumption, and provide an overall view of projection bias.
References
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Daniel Kahneman,Amos Tversky +1 more
TL;DR: In this paper, the authors present a critique of expected utility theory as a descriptive model of decision making under risk, and develop an alternative model, called prospect theory, in which value is assigned to gains and losses rather than to final assets and in which probabilities are replaced by decision weights.
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Bowling Alone: The Collapse and Revival of American Community
Robert D. Putnam
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Loss Aversion in Riskless Choice: A Reference-Dependent Model
Amos Tversky,Daniel Kahneman +1 more
TL;DR: In this article, the authors present a reference-dependent theory of consumer choice, which explains such effects by a deformation of indifference curves about the reference point, in which losses and disadvantages have greater impact on preferences than gains and advantages.
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Happiness: Lessons from a New Science
Richard Layard
- 27 Jan 2005
TL;DR: In this new edition of his landmark book, Richard Layard shows that there is a paradox at the heart of our lives as discussed by the authors, which is not just anecdotally true, it is the story told by countless pieces of scientific research.
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The Theory Of The Leisure Class
TL;DR: The Pecuniary standard of living is defined in this paper as "conspicuous leisure, conspicuous consumption, and higher learning as an expression of the pecuniary culture".
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