Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83639
Authors: 
Pugno, Maurizio
Year of Publication: 
2013
Series/Report no.: 
Economics Discussion Papers 2013-54
Abstract: 
By revisiting Scitovsky's work on well-being, which introduces 'novelty' into the consumer's option set as a peculiar source of satisfaction, this paper finds a number of connections with the recent behavioural economics so as to open new lines on inquiry. First, similarly to behavioural economics, Scitovsky used psychology to interpret sub-optimal choices. However, his welfare benchmark is different from rational choice, as understood by the economists, because 'novelty' implies a very strong form of uncertainty, as well as learning. Second, Scitovsky contributed to further elaboration of the two-systems framework put forward by Kahneman's recent book, which attempts to base behavioural economics on new foundations. Third, Scitovsky anticipated and contributed to specific analytical issues that have been studied in behavioural economics, such as the role of people's skill in uncertainty, the unpredictability of taste changes, and harmful addiction.
Subjects: 
Scitovsky
behavioural economics
novelty
consumption skill
strong uncertainty
harmful addiction
JEL: 
B31
D03
D11
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/
Document Type: 
Working Paper

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