Artikel
The evolution of decision and experienced utilities
Psychologists report that people make choices on the basis of "decision utilities'' that routinely overestimate the "experienced utility'' consequences of these choices. This paper argues that this dichotomy between decision and experienced utilities may be the solution to an evolutionary design problem. We examine a setting in which evolution designs agents with utility functions that must mediate intertemporal choices, and in which there is an incentive to condition current utilities on the agent's previous experience. Anticipating future utility adjustments can distort intertemporal incentives, a conflict that is attenuated by separating decision and experienced utilities.
- Language
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Englisch
- Bibliographic citation
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Journal: Theoretical Economics ; ISSN: 1555-7561 ; Volume: 6 ; Year: 2011 ; Issue: 3 ; Pages: 311-339 ; New Haven, CT: The Econometric Society
- Classification
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Wirtschaft
Consumer Economics: Theory
- Subject
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Evolution
decision utility
experienced utility
focusing illusion
- Event
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Geistige Schöpfung
- (who)
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Robson, Arthur J.
Samuelson, Larry
- Event
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Veröffentlichung
- (who)
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The Econometric Society
- (where)
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New Haven, CT
- (when)
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2011
- DOI
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doi:10.3982/TE800
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Robson, Arthur J.
- Samuelson, Larry
- The Econometric Society
Time of origin
- 2011
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