The renaissance of belief-based utility in economics

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 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).

    Article  Google Scholar 

  2. 2.

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

    Article  Google Scholar 

  3. 3.

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

    CAS  Article  PubMed  Google Scholar 

  4. 4.

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

    Article  Google Scholar 

  5. 5.

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

    Article  Google Scholar 

  6. 6.

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

    Article  Google Scholar 

  7. 7.

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

    Article  Google Scholar 

  8. 8.

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

    Article  Google Scholar 

  9. 9.

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

    Google Scholar 

  10. 10.

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

    Article  Google Scholar 

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

Authors

Corresponding author

Correspondence to George Loewenstein.

Ethics declarations

Competing interests

The authors declare no competing interests.

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Loewenstein, G., Molnar, A. The renaissance of belief-based utility in economics. Nat Hum Behav 2, 166–167 (2018). https://doi.org/10.1038/s41562-018-0301-z

Download citation

Further reading

Search

Nature Briefing

Sign up for the Nature Briefing newsletter — what matters in science, free to your inbox daily.

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