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Measuring the intrinsic value of choice

Author

Listed:
  • Feldhaus, Christoph
  • Lingens, Jörg
  • Löschel, Andreas
  • Zunker, Gerald

Abstract

We propose a method to quantify the intrinsic value of choice as a distinct component of utility separate from outcome-based utility. Using this conceptual approach, we discuss how the instrumental value of choice can be separated from its intrinsic value and derive a measure of the utility loss from constrained choice. In an incentivized online experiment, we estimate the average intrinsic value of choice at 8.9% of participants’ endowments. This suggests that the ability to choose itself constitutes a non-trivial source of utility. This observation has implications for the evaluation of policies and institutions that limit individual choice, such as command-and-control policies, even without altering material outcomes.

Suggested Citation

  • Feldhaus, Christoph & Lingens, Jörg & Löschel, Andreas & Zunker, Gerald, 2026. "Measuring the intrinsic value of choice," European Economic Review, Elsevier, vol. 184(C).
    • Handle: RePEc:eee:eecrev:v:184:y:2026:i:c:s0014292125003046
    DOI: 10.1016/j.euroecorev.2025.105254
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    References listed on IDEAS

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    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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