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Bližší pohled na užitek maximalizovaný ekonomickými subjekty
[A closer look at utility maximised by economic agents]

Author

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  • Michal Skořepa

Abstract

The relatively new stream of research on various types of utilities is reviewed and discussed together with some of its implications. The distinction is explained among experienced utility, remembered utility and predicted utility as three candidates for decision utility. Examples of selected empirical findings are given which show discrepancies, first, between past experienced utility and remembered utility and, second, between predicted utility and actual future experienced utility. Some critical reactions to the findings are briefly mentioned as well as implications for the debate on some important moral issues such as paternalism and HIV testing. It is concluded that there may be some methodological doubts about the empirical evidence available so far but even so, the evidence indicates that the tendency of models in economics to work with "the" utility to be maximised may be an overly simplified picture of the actual process of evaluation of outcomes.

Suggested Citation

  • Michal Skořepa, 2008. "Bližší pohled na užitek maximalizovaný ekonomickými subjekty [A closer look at utility maximised by economic agents]," Politická ekonomie, Prague University of Economics and Business, vol. 2008(2), pages 242-256.
  • Handle: RePEc:prg:jnlpol:v:2008:y:2008:i:2:id:639:p:242-256
    DOI: 10.18267/j.polek.639
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    References listed on IDEAS

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    1. Read, Daniel & van Leeuwen, Barbara, 1998. "Predicting Hunger: The Effects of Appetite and Delay on Choice, , , ," Organizational Behavior and Human Decision Processes, Elsevier, vol. 76(2), pages 189-205, November.
    2. George Loewenstein & Ted O'Donoghue & Matthew Rabin, 2003. "Projection Bias in Predicting Future Utility," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1209-1248.
    3. Daniel Kahneman & Peter P. Wakker & Rakesh Sarin, 1997. "Back to Bentham? Explorations of Experienced Utility," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 375-406.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    utility; experienced utility; remembered utility; predicted utility; empathy gap; temptation gap;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory

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