A recent article in the Atlantic discusses a research paper in behavioral economics that came up with a recommendation for leading a happier life. According to their findings, we would be happier if we would buy experiences instead of material goods. One of the authors of the paper, Matthew Killingsworth, writes that "happiness is in the content of moment-to-moment experiences".
Over the past decade, an abundance of psychology research has shown that experiences bring people more happiness than do possessions. The idea that experiential purchases are more satisfying than material purchases has long been the domain of Cornell psychology professor Thomas Gilovich. Since 2003, he has been trying to figure out exactly how and why experiential purchases are so much better than material purchases. In the journal Psychological Science last month, Gilovich and Killingsworth, along with Cornell doctoral candidate Amit Kumar, expanded on the current understanding that spending money on experiences "provide[s] more enduring happiness." They looked specifically at anticipation as a driver of that happiness; whether the benefit of spending money on an experience accrues before the purchase has been made, in addition to after. And, yes, it does.
Essentially, when you can't live in a moment, they say, it's best to live in anticipation of an experience. Experiential purchases like trips, concerts, movies, et cetera, tend to trump material purchases because the utility of buying anything really starts accruing before you buy it.
Their research seems to point to an explanation for this phenomenon:
Gilovich's prior work has shown that experiences tend to make people happier because they are less likely to measure the value of their experiences by comparing them to those of others. For example, Gilbert and company note in their new paper, many people are unsure if they would rather have a high salary that is lower than that of their peers, or a lower salary that is higher than that of their peers. With an experiential good like vacation, that dilemma doesn't hold. Would you rather have two weeks of vacation when your peers only get one? Or four weeks when your peers get eight? People choose four weeks with little hesitation.
They go on to say that this runs counter to the widespread belief that experiences like vacations are gone once they have been completed while material objects will endure. That wondrous iPhone soon becomes passé and needs to be replaced.
The best explanation for the effect seems to be:
What is it about the nature of imagining experiential purchases that's different from thinking about future material purchases? The most interesting hypothesis is that you can imagine all sort of possibilities for what an experience is going to be. "That's what's fun," Kumar said. "It could turn out a whole host of ways." With a material possession, you kind of know what you're going to get. Instead of whetting your appetite by imagining various outcomes, Kumar put it, people sort of think, Just give it to me now.
It could turn out that to get the maximum utility out of an experiential purchase, it's really best to plan far in advance. Savoring future consumption for days, weeks, years only makes the experience more valuable. It definitely trumps impulse buying, where that anticipation is completely squandered. (Never impulse-buy anything ever.)
Here is the link to the full article: Buy Experiences, Not Things - The Atlantic
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