Peak-End Rule: A Utility-Based Explanation

Authors

Olga Kosheleva, The University of Texas at El PasoFollow
Martine Ceberio, The University of Texas at El PasoFollow
Vladik Kreinovich, The University of Texas at El PasoFollow

Publication Date

5-2013

Comments

Technical Report: UTEP-CS-13-27

Abstract

In many practical situations, people judge their overall experience by only taking into account the peak and the last levels of pleasantness or unpleasantness. While this peak-end rule is empirically supported by numerous psychological experiments, it seems to contradict our general theoretical ideas about people's preferences. In this paper, we show that, contrary to this impression, the end-peak rule can be justified based on the main ideas of the traditional utility-based decision theory.