Can Money Buy Happiness? Evidence from the Discounting of Uncertain Happiness.

Abstract

Discounting has been used to describe choice behavior under conditions of uncertainty. Generally speaking, it has been found that as an outcome becomes more uncertain, the value the individual places on the outcome decreases (a subjective value that is lower than the actual value). Choice behavior has generally been investigated through choices between two of the same outcome (usually a monetary outcome) The present study was the first to study choice behavior between two different outcomes: money and happiness. By examining these choices, we aimed to place a price (value) on happiness.