Perez Truglia, Ricardo Nicolas (2009): On the genesis of Hedonic Adaptation.
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Some sensations, in addition to guide behavior, serve an extra and even more important role: as warning or defense mechanisms (e.g. pain, fever). Additionally, intense sensations are costly from a fitness point of view. With only these two biological facts we show that Nature must design utility functions with regulation mechanisms such as hedonic adaptation or expectation-based preferences. Even though they are rarely incorporated into economic models, such mechanisms are widely recognized and documented in many fields such as neuroscience and psychology. Using such utility functions economists will not only provide more accurate welfare predictions, but we will also increase the number of behavioral phenomena that we are able to explain. Finally, we provide as an application a model of the psychological defenses.
|Item Type:||MPRA Paper|
|Original Title:||On the genesis of Hedonic Adaptation|
|Keywords:||hedonic adaptation; evolution; expectations; decision utility; experienced utility|
|Subjects:||D - Microeconomics > D0 - General > D03 - Behavioral Microeconomics: Underlying Principles
B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B52 - Institutional ; Evolutionary
I - Health, Education, and Welfare > I0 - General > I00 - General
|Depositing User:||Ricardo Perez Truglia|
|Date Deposited:||18. Jan 2010 07:54|
|Last Modified:||18. Feb 2013 20:53|
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