Anticipation Utility
Making decisions about pleasurable experiences well in advance allows you to derive happiness from anticipation, which can be even more gratifying than the actual event. This principle can be applied to various decisions like vacations, major purchases, and retirement planning.
THE IDEA
Make Pleasure-Enhancing Decisions Long in Advance, to Increase the Utility of Anticipation
Anticipation of a future reward, such as an upcoming vacation, can sometimes be even more gratifying than the experience itself. This is the idea behind anticipation utility. By deciding early on a pleasurable event, you can savor it for months, even years, before it happens.
Examples illustrate this:
- Kessely Hong and her family enjoy discussing vacation ideas months in advance, imagining themselves at the destinations and savoring the food, thus deriving pleasure long before the trip.
- Chris Robert, a tech entrepreneur, delays major purchases like a new car by setting long-term milestones, finding that the happiness from anticipation exceeds the actual purchase.
- Robert Lawrence adopted a retirement strategy focused on long-term gains for his heirs, allowing him to derive joy from anticipating their future benefit.
On the flip side, avoid anticipating negative events. For instance, don't dwell on an upcoming unpleasant medical procedure.
Also, you can derive pleasure from past decisions by focusing on the positives. Frederick Schauer suggests maximizing the utility of decisions already made by making the best of them and actively acknowledging the good aspects.
Alan Garber recalls a conversation between Ken Arrow and Richard about peak experiences: spending on an exceptional meal is justified by the long-lasting memory it creates.
After making a decision, look for ways to enjoy it and make supporting choices that improve the experience. Paul Resnick, after choosing the University of Michigan, took bike tours, built relationships, and bought a home near campus, all increasing the utility of his original decision.
Supporting choices should improve the experience. Continuing to spend merely to defend an earlier choice can become a sunk-cost mistake; enjoying its good aspects does not require ignoring new evidence.
When to use it
Planning a vacation: Book flights and accommodations months in advance to enjoy the anticipation of the trip.
Major purchase: Set a long-term goal and delay a purchase like a new car, using the anticipation as a reward.
In retirement planning, consider the enjoyment of a hoped-for legacy alongside the financial needs and uncertainty involved.
After choosing a college, explore activities and relationships that make the experience more rewarding.
FROM THEORY TO EVERYDAY LIFE
In practice
Family Vacation Anticipation
Kessely Hong and her family derive enjoyment by talking about vacation ideas months in advance, imagining themselves at the places, savoring the food, etc., increasing the utility of anticipation.
Car Purchase as Reward
Chris Robert delayed buying a new car for years, setting milestones to reach before purchasing, so that he could savor the anticipation over a long period, finding that the anticipation happiness exceeded the actual purchase.
Retirement Investment for Heirs
Robert Lawrence adopted a riskier investment strategy recommended by Richard, investing mainly for children and grandchildren, allowing him to enjoy anticipating their future benefit.
A MOMENT TO REFLECT
Put it to work.
Think of a pleasure-enhancing decision you can make today that will bring you anticipation utility over the next few months. What is it, and how can you schedule it far in advance?
Recall a past decision that you can still derive pleasure from. How can you maximize the utility of that decision by focusing on its positive aspects?
Identify a future negative event you are dreading. How can you avoid ruminating on it and instead focus on positive anticipations?
Often confused with
CONTINUE THE CONVERSATION
Source texts
- Maxims for Thinking Analytically The wisdom of legendary Harvard Professor Richard Zeckhauser (Dan Levy)