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The New Science of Pleasure

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  • Daniel L. McFadden

Abstract

Economists since the days of Adam Smith and Jeremy Bentham have traditionally viewed consumers as driven by relentless and consistent pursuit of self-interest, with their choices in the marketplace providing all the measurements needed to reveal their preferences and assess their well-being. This theory of consumer choice is empirically successful, and provides the foundation for most economic policy. However, the traditional view is now being challenged by evidence from cognitive psychology, anthropology, evolutionary biology, and neurology. This paper begins by surveying the origins of neoclassical consumer choice theory and recent developments. Following this, it reviews the newer evidence on consumer behavior, and what this implies for the measurement of consumer choice behavior and well-being.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18687.

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Date of creation: Jan 2013
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Handle: RePEc:nbr:nberwo:18687

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The new science of pleasure. Consumer choice behavior and the measurement of well being
    by ? in Tiempo Económico on 2013-03-21 11:33:48
  2. Notes for April 26th Macro lecture
    by Gray in Pseudo-true News on 2013-04-26 22:33:03
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Cited by:
  1. Anirban Chakraborti & Damien Challet & Arnab Chatterjee & Matteo Marsili & Yi-Cheng Zhang & Bikas K. Chakrabarti, 2013. "Statistical Mechanics of Competitive Resource Allocation using Agent-based Models," Papers 1305.2121, arXiv.org, revised Jul 2014.
  2. A. Mantovi, 2013. "On the geometry of luxury," Economics Department Working Papers 2013-EP02, Department of Economics, Parma University (Italy).

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