Comment | Published:

The renaissance of belief-based utility in economics

Nature Human Behaviourvolume 2pages166167 (2018) | Download Citation

Why isn’t there a strong relation between income and happiness? Why do people avoid or seek self-confirmatory or even false information? Why do they play the lottery and buy insurance? Taking account of belief-based utility can enable economics to make sense of these and a multitude of other puzzling phenomena.

Access optionsAccess options

Rent or Buy article

Get time limited or full article access on ReadCube.

from$8.99

All prices are NET prices.

References

  1. 1.

    Bénabou, R. & Tirole, J. J. Econ. Perspect. 30, 141–164 (2016).

  2. 2.

    Caplin, A. & Leahy, J. Q. J. Econ. 116, 55–79 (2001).

  3. 3.

    Loewenstein, G. Science 312, 704–706 (2006).

  4. 4.

    Golman, R., Hagmann, D. & Loewenstein, G. J. Econ. Lit. 55, 96–135 (2017).

  5. 5.

    Kőszegi, B. & Rabin, M. Am. Econ. Rev.. 99, 909–936 (2009).

  6. 6.

    Geanakoplos, J., Pearce, D. & Stacchetti, E. Games Econ. Behav. 1, 60–79 (1989).

  7. 7.

    Chater, N. & Loewenstein, G. J. Econ. Behav. Organ. 126, 137–154 (2016).

  8. 8.

    Kőszegi, B. Econ. Theory 44, 415–444 (2010).

  9. 9.

    Akerlof, G. A. & Dickens, W. T. Am. Econ. Rev. 72, 307–319 (1982).

  10. 10.

    Abelson, R. P. J. Theory Soc. Behav. 16, 223–250 (1986).

Download references

Acknowledgements

The authors thank R. Bénabou, A. Imas, B. Kőszegi, E. Carbone and C. Taylor for their valuable comments on earlier versions of the manuscript.

Author information

Affiliations

  1. Department of Social and Decision Sciences, Carnegie Mellon University, Pittsburgh, PA, USA

    • George Loewenstein
    •  & Andras Molnar

Authors

  1. Search for George Loewenstein in:

  2. Search for Andras Molnar in:

Competing interests

The authors declare no competing interests.

Corresponding author

Correspondence to George Loewenstein.

About this article

Publication history

Published

DOI

https://doi.org/10.1038/s41562-018-0301-z

Further reading

Newsletter Get the most important science stories of the day, free in your inbox. Sign up for Nature Briefing