“The New Science of Pleasure,” a new paper by Daniel L. McFadden, reviews how psychology, biology, and neurology are ganging up on economics to prove that, when it comes to making decisions, people are anything but rational.
The neoclassical view of consumers as relentless egoistic maximizers is challenged by evidence from cognitive psychology, anthropology, evolutionary biology, and neurology. This paper begins by surveying the development of neoclassical consumer theory and the measurement of welfare, and expansions to encompass preference fields, nonlinear budgets, hedonic goods and household production, and consumption dynamics. Following this, it reviews the newer evidence on consumer behavior, and what this implies for the measurement of consumer beliefs, intentions, preferences, choices, and well-being.
The Atlantic’s Derek Thompson interviewed the author.
“Neither the physiology of pleasure nor the methods we use to make choices are as simple or as single-minded as the classical economists thought. A lot of behavior is consistent with pursuit of self-interest, but in novel or ambiguous decision-making environments there is a good chance that our habits will fail us and inconsistencies in the way we process information will undo us.”
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Last month Putting People First announced the upcoming conference on design & sustainable innovation for smart cities in Nice France. Meanwhile we are pleased to announce the full event agenda (see below). This event will feature professionals from leading research institutes and industry gathering to present key initiatives which combine Energy Efficiency and Service Design […]
Invitation to the International Conference on Design & Sustainable Innovation for SmartCities Nice (France) 8 December 2016 On the 8th December 2016, the CITYOPT project will host an international conference on Design and sustainable innovation for SmartCities, at the Centre Universitaire Méditerranéen, France. An open invitation to attend is offered to people and organisations who […]
The 100&Change is an international competition and a landmark opportunity for thinkers and designers to tackle critical challenges affecting the world. Michele Visciòla will be one of the panel of expert judges who will select which project is worthy of the $100 million grant. 100&Change is the MacArthur Foundation competition – launched this year for […]
The September issue of the Harvard Business Review (HBR) contains a lengthy essay, entitled Building an Insights Engine, on how Unilever has created the organizational capabilities to “transform data into insights about consumers’ motivations and to turn those insights into strategy.” The article was written by Frank van den Driest and Keith Weed of a […]
This week Experientia joins our colleagues and peers in Minneapolis at EPIC 2016, the premier international gathering on ethnography and design in industry. The theme for the conference this year is Pathmaking, emphasizing the power of ethnography to create transformative innovation, growth and strategic success for companies, industries and communities. On the second day of […]
Can behavioral change address local energy issues, raise people’s awareness energy consumption issues, and directly support non-profit organizations at the same time? With the Nice pilot of the CITYOPT project, we have seen strong suggestions that it can. It also suggests that the sense of belonging to a local community is a strong motivation for […]