Author(s)  
Daniel Benjamin, Ori Heffetz, Miles Kimball, Alex Rees-Jones

Would people choose what they think would maximize their subjective well-being (SWB)? We present survey respondents with hypothetical scenarios and elicit both choice and predicted SWB rankings of two alternatives. While choice and predicted SWB rankings usually coincide in our data, we find systematic reversals. We identify factors—such as predicted sense of purpose, control over one's life, family happiness, and social status—that help explain hypothetical choice controlling for predicted SWB. We explore how our findings vary by SWB measure and by scenario. Our results have implications regarding the use of SWB survey questions as a proxy for utility.

Publication Type  
Article
Journal  
American Economic Review
Volume  
102
Issue Number  
5
Pages  
2083-2110
JEL Codes  
D03: Behavioral Economics: Underlying Principles
I31: General Welfare