Adaptive utility

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2023
Volume: 211
Issue: C
Pages: 60-81

Authors (3)

Robson, Arthur J. (Simon Fraser University) Whitehead, Lorne A. (not in RePEc) Robalino, Nikolaus (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper models the real-time adaptation of utility when individuals have a limited capacity to make fine distinctions. A simple adaptive mechanism is proposed that adapts utility to an arbitrary distribution of rewards in a way that is ultimately optimal, in terms of minimizing the probability of errors. A modified simple mechanism is approximately optimal in terms of maximizing expected utility. The model generates the so-called “hedonic treadmill” and induces a preference for rising consumption.

Technical Details

RePEc Handle
repec:eee:jeborg:v:211:y:2023:i:c:p:60-81
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29