Please enable JavaScript.
Coggle requires JavaScript to display documents.
Decision, experienced, instant & remembered utility (Decision utility,…
Decision, experienced, instant & remembered utility
-
remembering utility, story teller. past memories
How the story ends has a huge effect on how we remember an experience. Significant moments also matter a huge amount
Remembering self, makes decisions
-
Happiness of remembering self, driven off how satisfied an individual is when remembering.
Duration has very little affect on remembered utility. Peak of utility and disutiltiy are the main driver.
Duration neglect ,Peak-End rule
Scitovsky Consumers over invest in comforts and under invest in pleasures, as a result of lacking measurement for experienced utility.
-
Decision utility, the neo classical economist mean by utility based off: knowing ones own preferences, observed decision making.
-
-
The longer the time between decision and actual experience that comes with decision, the more likely the individual will not maximize utility
Causes of irrational behavior, Current emotional state: going food shopping when already hungry.
Effect of context on choice: comparison effects. The reference group may not be the best for the individual.
-
-
The forecast of future hedonic state is anchored in the present state. (Hungry shopper) projection bias (Thaler Kaneman 2006)
-
Context of choice: Comparing two products which are very similar and only ranked over each when placed next to each other. speakers 2 are similar in sound quality but one is ugly compared to the other. In the home you will not be comparing the set of speakers, so which will maximize utility most?
Learning from the past: subject to your emotional state at the time, for example a menu when an individual revisits a restaurant. Evaluations are anchored to previous hedonic experience.
-
-
-
Hedonic forecasting: nothing in life matters quite as much as when you are thinking about it. We exaggerate the importance of an aspect when we focus on it.