We propose the anticipation-event-recall (AER) model. Set in a continuous time frame, the AER model formally links the three components of total utility (i.e., utility from anticipation, event utility, and utility from recall). The AER model predicts the temporal profiles of instant utility experienced before, during, and after a given event. Total utility is calculated as the integral of instant utility. The model builds on the psychological elements of conceptual consumption, adaptation, and time distance. By virtue of its rich formulation, the AER model produces a wide set of insights and testable predictions, including the U shape of instant utility during anticipation and the optimal duration of anticipation for a given event. Using both real and hypothetical events, we provide empirical evidence in support of the main implications of the AER model.
Data and supplemental material are available at http://dx.doi.org/10.1287/mnsc.2015.2362.
Baucells, Manel, and Silvia Bellezza. "Temporal Profiles of Instant Utility During Anticipation, Event, and Recall." Management Science 63, no. 3 (March 2017): 729-748.
Each author name for a Columbia Business School faculty member is linked to a faculty research page, which lists additional publications by that faculty member.
Each topic is linked to an index of publications on that topic.