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Disentangling Motivational and Experiential Aspects of "Utility" - A Neuroeconomics Perspective

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  • Ulrich Witt
  • Martin Binder

Abstract

Although decision makers are often reported to have difficulties in making comparisons between multi-dimensional decision outcomes, economic theory assumes a uni-dimensional utility measure. This paper reviews evidence from behavioral and brain sciences to assess whether, and for what reasons, this assumption may be warranted. It is claimed that the decision makers' difficulties can be explained once the motivational aspects of utility ("wanting") are disentangled from the experiential ones ("liking") and the features of the different psychological processes involved are recognized.

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File URL: ftp://137.248.191.199/RePEc/esi/discussionpapers/2011-20.pdf
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Bibliographic Info

Paper provided by Philipps University Marburg, Department of Geography in its series Papers on Economics and Evolution with number 2011-20.

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Length: 19 pages
Date of creation: 22 Dec 2011
Date of revision:
Handle: RePEc:esi:evopap:2011-20

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Keywords: utility; neuroeconomics; index number problem; wanting; liking; affective; forecasting;

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Cited by:
  1. Martin Binder & Leonhard K. Lades, 2013. "Autonomy-enhancing paternalism," Papers on Economics and Evolution, Philipps University Marburg, Department of Geography 2013-04, Philipps University Marburg, Department of Geography.
  2. Martin Binder, 2014. "Should evolutionary economists embrace libertarian paternalism?," Journal of Evolutionary Economics, Springer, Springer, vol. 24(3), pages 515-539, July.

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