Author/Authors :
KAMİLÇELEBİ, Hatime Kırklareli Üniversitesi - Babaeski Meslek Yüksek Okulu, Turkey
Title Of Article :
THE DIFFERENCE BETWEEN EXPERIENCED UTILITY AND DECISION UTILITY IN BEHAVIORAL ECONOMICS AND AN EXPERIMENT
Abstract :
According to neoclassic economics view, by acting rationally an individual reaches to the maximum utility. There are cardinal and ordinal utility theories concerning the measurability an immeasurability of the utility. In the studies related to the behavioral economics, the utility is handled as decision utility, experienced utility (remembered utility and real time utility) and experiments have been conducted to explain these concepts. With the experiments dealing with the utility theories how people measure their utility and how they decide on whether they are happy or not are researched. In this study, an experiment carried out on the measurability of experienced utility and decision utility with Banking and Insurance students. An experiment was carried by asking different questions to the students based on same case. In this experiment, it was concluded that their decisions based on remembered observations, in other words “experienced utility”, differs from “decision utility”; the results of their past decisions.
NaturalLanguageKeyword :
Behavioral Economics , Experienced Utility , Decision Utility , Choices
JournalTitle :
dokuz eylul university the journal of graduate school of social sciences
