Experienced utility: Utility theory from Jeremy Bentham to Daniel Kalmeman

Utility is sometimes defined as being a way to summarise choice, and sometimes as the benefit we get from experience. In economics, the twentieth century saw the former definition supplant the latter. Recent research by Kahneman and colleagues has undertaken to resurrect the latter definition under the heading of "experience utility". In this paper I give a brief history of the concept of experience utility, and examine three normative claims that have been made about it: that it avoids the problem of dependent utilities, that it can be measured from an invariant "zero point", and that it allows intrapersonal comparison of utilities.