Week 10

Question 1

Economics vs. Hedonomics: Subjective well-being across time

Answer 1

although the average GDP has increased across time, happiness hasn’t gone up.

Question 2

Economics vs. Hedonomics: subjective well-being across sections

Answer 2

Differences only really exist inside an area not across

- Chicago not happier/sadder than New York, differences in happiness only exist within cities

Question 3

Economics vs. Hedonomics: contrast effect

Answer 3

if one is exposed to the same stimuli for an extended period, they will see the opposite when not exposed to the same thing.

• when in a darkroom for a long time, after coming out, one sees the exact opposite color (from red to green).
• Example of Xi’s experience having to take a shit in Mexico city and the relativity of the polluted air.

Question 4

Economics vs. Hedonomics: • adaptation effect

Answer 4

start getting used to the red light (in the darkroom example). Often underestimated

Question 5

Comparisons

Answer 5

normally of a social nature. Compare me with my peers, but not across regions or generations
 Hsee’s eyesight compared with the rest of us || Human smell comparable to a dog

Question 6

Variations

Answer 6

change/spikes in experiential feeling

Question 7

Separate gains

Answer 7

utility function of happiness is not a 1:1, therefore should separate, because 1 plus another 1 has a higher jump than from 1 to 2

Question 8

Combine losses

Answer 8

first loss is steep, but others aren’t so bad, so say everything bad at one time

Question 9

Seek variable gains

Answer 9

give a little extra unexpected bonus vs a higher expected salary. People tend to be able to adapt to the higher average and are unhappy faster

Question 10

Avoid Variable losses

Answer 10

worse to do this because of loss aversion. Want to keep people at a constant low so that they can get used to it

Question 11

Number guessing game

Answer 11

The rational answer (0) doesn’t always win, especially when dealing with a normative population