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The Hedonistic Paradox: Is Homo Economicus Happier?

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Author Info
Konow, James
Earley, Joseph

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Abstract

The “Hedonistic Paradox” states that homo economicus, or someone who seeks happiness for him- or herself, will not find it, but the person who helps others will. This study examines two questions in connection with happiness and generosity. First, do more generous people, as identified in dictator experiments, report on average greater happiness, or subjective well-being (SWB), as measured by responses to various questionnaires? Second, if the answer is affirmative, what is the causal relationship between generosity and happiness? We find a favorable correlation between generosity and happiness (i.e., SWB is directly related to several measures of happiness and inversely related to unhappiness) and examine various possible explanations, including that material well-being causes both happiness and generosity. The evidence from this experiment, however, indicates that a tertiary personality variable, sometimes called psychological well-being, is the primary cause of both happiness and greater generosity. In contrast to field studies, the experimental method of this inquiry permits anonymity measures designed to minimize subject misrepresentation of intrinsic generosity (e.g., due to social approval motives) and of actual happiness (e.g., because of social desirability biases) and produces a rich data set with multiple measures of subjective, psychological and material well-being. The results of this and other studies raise the question of whether greater attention should be paid to the potential benefits (beyond solely the material ones) of policies that promote charitable donations, volunteerism, service education, and, more generally, community involvement, political action, and social institutions that foster psychological well-being.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 2728.

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Date of creation: Mar 2007
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Handle: RePEc:pra:mprapa:2728

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Related research
Keywords: Happiness Subjective well-being Altruism Generosity Psychological well-being Eudaimonia

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Find related papers by JEL classification:
D64 - Microeconomics - - Welfare Economics - - - Altruism
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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  1. David G. Blanchflower & Andrew J. Oswald, 2000. "Well-Being Over Time in Britain and the USA," NBER Working Papers 7487, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Powdthavee, Nattavudh, 2004. "Testing For Utility Interdependence In Marriage : Evidence From Panel Data," The Warwick Economics Research Paper Series (TWERPS) 705, University of Warwick, Department of Economics. [Downloadable!]
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  3. Stephan Meier & Alois Stutzer, . "Is Volunteering Rewarding in Itself?," IEW - Working Papers iewwp180, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  4. Di Tella, Rafael & MacCulloch, Robert J. & Oswald, Andrew J., 2001. "The Macroeconomics of Happiness," The Warwick Economics Research Paper Series (TWERPS) 615, University of Warwick, Department of Economics. [Downloadable!]
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  5. Alesina, Alberto F & Di Tella, Rafael & MacCulloch, Robert, 2001. "Inequality and Happiness: Are Europeans and Americans Different?," CEPR Discussion Papers 2877, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Bruno S. Frey & Alois Stutzer, . "Beyond Outcomes: Measuring Procedural Utility," IEW - Working Papers iewwp076, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  7. Rafael Di Tella & Robert MacCulloch, 2005. "Gross National Happiness as an Answer to the Easterlin Paradox?," Macroeconomics 0504027, EconWPA. [Downloadable!]
    Other versions:
  8. Namkee Ahn & Juan Ramón García, . "Job Satisfaction in Europe," Working Papers 2004-16, FEDEA. [Downloadable!]
  9. Bruno Frey & Alois Stutzer, 2001. "Beyond Bentham -- Measuring Procedural Utility," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
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