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Beyond Bentham – Measuring Procedural Utility

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  • Bruno S. Frey
  • Alois Stutzer

Abstract

We propose that outcome utility and process 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 or happiness. We find that participation rights provide more procedural utility in terms of a feeling of self-determination and influence than actual participation.

Suggested Citation

  • Bruno S. Frey & Alois Stutzer, 2001. "Beyond Bentham – Measuring Procedural Utility," CESifo Working Paper Series 492, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_492
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    File URL: http://www.cesifo-group.de/DocDL/cesifo_wp492.pdf
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    References listed on IDEAS

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    1. The responsibility paradox
      by chris dillow in Stumbling and Mumbling on 2013-11-20 20:45:15

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    Cited by:

    1. Aleksander Berentsen & Guillaume Rocheteau, 2004. "Money and Information," Review of Economic Studies, Oxford University Press, vol. 71(4), pages 915-944.
    2. Berentsen, Aleksander & Rocheteau, Guillaume, 2002. "On the efficiency of monetary exchange: how divisibility of money matters," Journal of Monetary Economics, Elsevier, vol. 49(8), pages 1621-1649, November.
    3. Alesina, Alberto & Di Tella, Rafael & MacCulloch, Robert, 2004. "Inequality and happiness: are Europeans and Americans different?," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2009-2042, August.
    4. Reto Foellmi & Urs Meister, 2005. "Product-Market Competition in the Water Industry: Voluntary Non-discriminatory Pricing," Journal of Industry, Competition and Trade, Springer, vol. 5(2), pages 115-135, June.
    5. Fischer, Sven & Guth, Werner & Pull, Kerstin, 2007. "Is there as-if bargaining?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(4), pages 546-560, August.
    6. Aleksander Berentsen & Guillaume Rocheteau, 2003. "Money and the Gains from Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(1), pages 263-297, February.
    7. Gary E. Bolton & Axel Ockenfels, 2004. "The Behavioral Tradeoff between Efficiency and Equity when a Majority Rules," Papers on Strategic Interaction 2003-12, Max Planck Institute of Economics, Strategic Interaction Group.

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