From Decision Utility to Experienced Utility: Back and Forth

Ivan Mitrouchev ()
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Ivan Mitrouchev: IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie Management, F-59000 Lille, France

Working Papers from IESEG School of Management

Abstract: This article reviews and discusses the axiomatic foundations of the normative theory of experienced utility proposed by Kahneman et al. (1997). First, I emphasise some philosophical problems with the axioms of Separability and Time Neutrality, which may require to reconsider them. Second, I discuss the implications of taking remembered utility rather than moment utility as the informational basis of the theory. Third, although the theoretical discrepancy between decision utility and experienced utility is intuitively appealing, signi?cant evidence about such a discrepancy is lacking, which may lead us back to decision utility as a welfare-relevant criterion.

Keywords: happiness; –; time; –; utility; –; welfare (search for similar items in EconPapers)
JEL-codes: B41 D60 D90 I31 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2023-08
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