The Experienced Utility Theory

Experienced Utility Theory suggests that people's happiness or satisfaction from an event depends on their actual experience of it, rather than just their expectations or memories. Unlike traditional models that focus on predicted outcomes, this theory emphasizes the importance of how individuals truly feel during and after an event. For example, if a trip turns out to be more enjoyable than expected, it boosts happiness more than predicted. Conversely, disappointment arises when experiences fall short of expectations. Overall, it highlights that real-time experiences shape our well-being more than anticipated or remembered evaluations.