Individual utilities of life satisfaction reveal inequality aversion unrelated to political alignment

Crispin Cooper, Ana Fredrich, Tommaso Reggiani () and Wouter Poortinga
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Crispin Cooper: Cardiff University (Computer Science)
Ana Fredrich: Cardiff University (Computer Science)
Wouter Poortinga: Cardiff University (Architecture - Psychology)

MUNI ECON Working Papers from Masaryk University

Abstract: How should well-being be prioritised in society, and what trade-offs are people willing to make between fairness and personal well-being? We investigate these questions using a stated preference experiment with a nationally quasi-representative UK sample (n = 300), in which participants evaluated life satisfaction outcomes for both themselves and others under conditions of uncertainty. Individual-level utility functions were estimated using an Expected Utility Maximisation (EUM) framework and tested for sensitivity to the overweighting of small probabilities, as characterised by Cumulative Prospect Theory (CPT). A majority of participants displayed concave (risk-averse) utility curves and showed stronger aversion to inequality in societal life satisfaction outcomes than to personal risk. These preferences were unrelated to political alignment, suggesting a shared normative stance on fairness in well-being that cuts across ideological boundaries. The results challenge use of average life satisfaction as a policy metric and support the development of nonlinear utility-based alternatives that more accurately reflect collective human values. Implications for public policy and well-being measurement are discussed.

Keywords: Subjective well-being; Experimental method; Inequality aversion; Expected utility; Prospect theory; Social welfare; Fairness trade-offs (search for similar items in EconPapers)
JEL-codes: C91 D63 D81 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2026-05
Note: License: CC-BY 4.0
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Working Paper: Individual utilities of life satisfaction reveal inequality aversion unrelated to political alignment (2026)
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Persistent link: https://EconPapers.repec.org/RePEc:mub:wpaper:2026-04

DOI: 10.5817/WP_MUNI_ECON_2026-04

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