Rayo, L., &Becker, G. S. (2007). Evolutionary efficiency and happiness. Journal of Political Economy, 115(2), 302-337.

We model happiness as a measurement tool used to rank alternative actions. Evolution favors a happiness function that measures the individual’s success in relative terms. The optimal function is based on a time‐varying reference point—or performance benchmark—that is updated over time in a statistically optimal way in order to match the individual’s potential. Habits and …

Tyler, T. R., Huo, Y. J., &Lind, E. A. (1999). The two psychologies of conflict resolution: Differing antecedents of pre-experience choices and post-experience evaluations.

The literature on the `myth of self-interest’ model of perceived human motivation suggests that people believe that both they and others are more motivated by self-interest than is actually the case. Four studies are reported which test one implication of the myth of self-interest: the psychology of pre-experience preferences and post-experience evaluations will differ. We …

Kasser, T., &Ryan, R. M. (1996). Further examining the American dream: Differential correlates of intrinsic and extrinsic goals.

Empirical research and organismic theories suggest that lower well-being is associated with having extrinsic goals focused on rewards or praise relatively central to one’s personality in comparison to intrinsic goals congruent with inherent growth tendencies. In a sample of adult subjects (Study 1), the relative importance and efficacy of extrinsic aspirations for financial success, an …

Sirgy, M. J. (1998). Materialism and quality of life. Social indicators research, 43(3), 227-260.

An attempt is made in this paper to establish a foundation for a theory of materialism and quality of life. The theory posits that overall life satisfaction (quality of life) is partly determined by satisfaction with standard of living. Satisfaction with standard of living, in turn, is determined by evaluations of one’s actual standard of …

Rosen, S. (1974). Hedonic prices and implicit markets: product differentiation in pure competition. Journal of political economy, 82(1), 34-55.

A class of differentiated products is completely described by a vector of objectively measured characteristics. Observed product prices and the specific amounts of haracteristics associated with each good define a set of implicit or “hedonic” prices. A theory of hedonic prices is formulated as a problem in the economics of spatial equilibrium in which the entire set …

Robinson, M. D., &Clore, G. L. (2002). Belief and feeling: Evidence for an accessibility model of emotional self-report. Psychological Bulletin, 128(6), 934-960.

This review organizes a variety of phenomena related to emotional self-report. In doing so, the authors offer an accessibility model that specifies the types of factors that contribute to emotional self-reports under different reporting conditions. One important distinction is between emotion, which is episodic, experiential, and contextual, and beliefs about emotion, which are semantic, conceptual, …

Mitchell, T. R., Thompson, L., Peterson, E., &Cronk, R. (1997). Temporal adjustments in the evaluation of events: The “rosy view”. Journal of experimental social psychology, 33(4), 421-448.

In a series of three investigations we examined people’s anticipation of, actual experiences in, and subsequent recollection of meaningful life events: a trip to Europe, a Thanksgiving vacation, and a 3-week bicycle trip in California. The results of all three studies supported the hypothesis that people’s expectations of personal events are more positive than their …

Kahneman, D., &Knetsch, J. L. (1992). Valuing public goods: the purchase of moral satisfaction. Journal of environmental economics and management, 22(1), 57-70.

Contingent valuation surveys in which respondents state their willingness to pay (WTP) for public goods are coming into use in cost-benefit analyses and in litigation over environmental losses. The validity of the method is brought into question by several experimental observations. An embedding effect is demonstrated, in which WTP for a good varies depending on …

Chay, K. Y., &Greenstone, M. (2005). Does air quality matter? Evidence from the housing market. Journal of political Economy, 113(2), 376-424.

We exploit the structure of the Clean Air Act to provide new evidence on the capitalization of total suspended particulates (TSPs) air pollution into housing values. This legislation imposes strict regulations on polluters in “nonattainment” counties, which are defined by concentrations of TSPs that exceed a federally set ceiling. TSPs nonattainment status is associated with …

Welsch, H. (2002). Preferences over prosperity and pollution: environmental valuation based on happiness surveys. Kyklos, 55(4), 473-494.

This paper uses cross–national data from happiness surveys, jointly with data on per capita income and pollution, to examine how self–reported well–being varies with prosperity and environmental conditions. This approach allows us to show that citizens care about prosperity and the environment, and to calculate the trade–off people are willing to make between them. The …