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Beyond Outcomes: Measuring Procedural Utility

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Author Info
Bruno Frey (University of Zurich, Switzerland)
Alois Stutzer (University of Zurich, Switzerland)

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Abstract

People not only obtain utility from actual outcomes but also from the conditions which lead to these outcomes. Procedural utility and outcome utility and outcome utility can be distinguished and empirically measured. People gain procedural utility from participating in the political decision-making process itself, irrespective of the outcome. Nationals enjoy both outcome and process utility, while foreigners are excluded from political decision-making and therefore cannot enjoy the corresponding procedural utility. Utility is measured by individuals' reported subjective well-being. We find that participation rights provide more procedural utility in terms of a feeling of self-determination and influence than actual participation.

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Paper provided by Berkeley Olin Program in Law & Economics in its series Berkeley Olin Program in Law & Economics, Working Paper Series with number 1062.

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Date of creation: 29 Apr 2002
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Handle: RePEc:cdl:oplwec:1062

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  5. Frey, Bruno S, 1994. "Direct Democracy: Politico-economic Lessons from Swiss Experience," American Economic Review, American Economic Association, vol. 84(2), pages 338-42, May. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Bruno S. Frey & Alois Stutzer, 2003. "Direct Democracy: Designing a Living Constitution," CREMA Working Paper Series 2003-05, Center for Research in Economics, Management and the Arts (CREMA). [Downloadable!]
    Other versions:
  2. Brian Roe & Steven Y. Wu, 2005. "Social Preferences and Relational Contracting Performance: An Experimental Investigation," Microeconomics 0509006, EconWPA. [Downloadable!]
  3. Ermanno Tortia, 2006. "Worker satisfaction and perceived fairness: result of a survey in public, and non-profit organizations," Department of Economics Working Papers 0604, Department of Economics, University of Trento, Italia. [Downloadable!]
  4. Nadja Trhal & Ralf Radermacher, 2006. "Bad luck vs. self-inflicted neediness – An experimental investigation of gift giving in a solidarity game," Working Paper Series in Economics 28, University of Cologne, Department of Economics, revised 07 Mar 2008. [Downloadable!]
  5. Bruno S. Frey & Matthias Benz, . "Being Independent is a Great Thing: Subjective Evaluations of Self-Employment and Hierarchy," IEW - Working Papers iewwp135, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  6. Marc Le Menestrel, 2003. "A One-Shot Prisoners’ Dilemma with Procedural Utility," Economics Working Papers 819, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  7. Bjørnskov, Christian & Dreher, Axel & Fischer, Justina AV, 2008. "Formal Institutions and Subjective Well-Being: Revisiting the Cross-Country Evidence," Working Paper Series in Economics and Finance 699, Stockholm School of Economics. [Downloadable!]
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