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Related Experiment Video

Updated: Jun 10, 2026

Visualizing Visual Adaptation

Visualizing Visual Adaptation

Published on: April 24, 2017

Getting used to it: the adaptive global utility model.

W David Bradford¹, Paul Dolan

¹Department of Public Administration and Policy, University of Georgia, United States.

Journal of Health Economics

|August 24, 2010

Summary

This summary is machine-generated.

This study introduces an adaptive global utility maximization model to explain how people adjust to life changes. The new model refines economic theory by incorporating adaptation, improving understanding of responses to factors like health changes.

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Area of Science:

Behavioral Economics
Decision Theory
Psychological Adaptation

Background:

Standard utility maximization models do not account for adaptation.
Adaptation is a common human behavior influencing decision-making.
Existing economic models lack a framework for endogenous adaptation.

Purpose of the Study:

To develop an adaptive global utility maximization model.
To integrate adaptation into economic decision-making frameworks.
To explain responses to changes in health and other life domains.

Main Methods:

Formulating utility as an aggregate function across life domains.
Optimizing domain-specific utility weights based on individual effort.
Conducting comparative statics on the general maximization problem.

Main Results:

The standard Slutsky equation requires an additional term for adaptation.
The proposed model endogenizes adaptation within utility maximization.
Demonstrated the model's applicability to health-related changes.

Conclusions:

The adaptive global utility maximization model offers a more comprehensive view of economic behavior.
Incorporating adaptation enhances the explanatory power of utility theory.
The model provides a novel framework for analyzing responses to life events.