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Social Choice and Welfare

, Volume 18, Issue 2, pp 269–288 | Cite as

A cognitive model of individual well-being

  • Itzhak Gilboa
  • David Schmeidler

Abstract.

This paper offers a model of individual well-being that takes into account cognitive factors. It postulates that individuals compare payoffs to aspiration levels. The latter are determined by past experiences (adaptation), by other people's performance (interpersonal comparison), as well as by reasoning (justifications and excuses). We axiomatize a measure of well-being defined on real-valued vectors of various lengths. It is a linear combination of differences between payoffs and aspiration levels, where the aspiration level at each instance is a linear function of past payoffs.

Keywords

Linear Combination Linear Function Past Experience Cognitive Model Cognitive Factor 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2001

Authors and Affiliations

  • Itzhak Gilboa
    • 1
  • David Schmeidler
    • 2
  1. 1.Department of Economics and Recanati School of Business, Tel Aviv University, Tel Aviv 69978, Israel (e-mail: igilboa@post.tav.ac.il)IL
  2. 2.Department of Statistics and Recanati School of Business, Tel Aviv University, Tel Aviv, Israel, and Department of Economics, Ohio State University, Ohio, OH, USA (e-mail: schmeid@tav.ac.il)IL

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