Summary

"...The concept of utility and value are commonly used in two distinct senses: a) experience value, degree of pleasure or pain, satisfaction or anguish in the actual experience of an outcome; and (b) decision value, the contribution of anticipated outcome to the overall attractiveness or aversiveness of an option in a choice..."

Daniel Kahneman 2012

. This distinction is readily explained as it is assumed that decision values and experiences coincide. In the real world, the concept of an idealised decision maker who is able to predict future experiences with perfect accuracy and evaluate options accordingly is a myth.

. Remember: reference points are largely determined by the status quo plus expectations and social comparisons.

. The mismatch of decision values and experience values introduces an element of uncertainty into decision-making

. Sometimes evaluation of outcomes in the context of decisions not only anticipates experience but also moulds it