ECO331H1 Lecture Notes - Lecture 8: Colonoscopy, Duration Neglect, Daniel Kahneman
Document Summary
Same outcome at different points in time have different outcome. Any effects of previous or anticipated consumption must be incorporated into measure of instant utility. An experience is not just experience itself but utility you get before hand and after thinking about the experience. Can add "neutral experience" without changing total utility of experience. Increasing utility of one instant implies increase in total utility. Since total utility is sum of all instant utilities, normative implication is we should maximize total utility. 52% chose a, 42% chose b, 6% chose c. When assessing past experience, duration does not matter, only peak and end. If end of colonoscopy less awful, more likely to come back for second colonoscopy b. First treatment hand in water for 60 seconds, second treatment hand in water for 90 seconds but gradually warmer in last 30 seconds. 21 subjects noticed that last 30 seconds not as bad. 11 did not notice last 30 seconds warmer.
