Essay in decision making

Abstract

In the first chapter, I investigate the causes behind the choice reversal, as procrastination of consumption good, by employing the evaluation of anticipatory feelings. To this aim, I adopt a dynamic experiment protocol over multiple points of the time. It allows me to disentangle anticipatory feelings from uncertainty and intertemporal consistency in intertemporal choices. I found that anticipatory feeling might be a significant possible explanation behind the choice reversal. In the second chapter, I discuss an experimental study comparing happiness between US Americans and Germans regarding their behaviors in saving and spending the money. I approach the relation between money and happiness by concentrating on two functions of money (saving and spending) and explore how happiness is affected by them. I also explore how social status affects happiness and how this differs between Americans and Germans. My main findings are: First, German self-classified savers who save and American self-classified spenders who spend are happier; Secondly, people receive happiness not only from absolute wealth, but also from relative wealth in comparison to others; Thirdly, relative wealth (social rank) is significantly more important to Americans than to Germans.In the first chapter, I investigate the causes behind the choice reversal, as procrastination of consumption good, by employing the evaluation of anticipatory feelings. To this aim, I adopt a dynamic experiment protocol over multiple points of the time. It allows me to disentangle anticipatory feelings from uncertainty and intertemporal consistency in intertemporal choices. I found that anticipatory feeling might be a significant possible explanation behind the choice reversal. In the second chapter, I discuss an experimental study comparing happiness between US Americans and Germans regarding their behaviors in saving and spending the money. I approach the relation between money and happiness by concentrating on two functions of money (saving and spending) and explore how happiness is affected by them. I also explore how social status affects happiness and how this differs between Americans and Germans. My main findings are: First, German self-classified savers who save and American self-classified spenders who spend are happier; Secondly, people receive happiness not only from absolute wealth, but also from relative wealth in comparison to others; Thirdly, relative wealth (social rank) is significantly more important to Americans than to Germans.LUISS PhD Thesi