Well-Being Inequality Using Superimposing Satisfaction Waves: Heisenberg Uncertainty in Behavioural Economics and Econometrics
Authors: Okay Gunes
In this article, a new method is proposed for the measuring of well-being inequality through a model composed of superimposing satisfaction waves. The displacement of households’ satisfactory state (i.e. satisfaction) is defined in a satisfaction string. The duration of the satisfactory state for a given period is measured in order to determine the relationship between utility and total satisfactory time, itself dependent on the density and tension of each satisfaction string. Thus, individual cardinal total satisfaction values are computed by way of a one-dimensional form for scalar sinusoidal (harmonic) moving wave function, using satisfaction waves with varying amplitudes and frequencies which allow us to measure wellbeing inequality. One advantage to using satisfaction waves is the ability to show that individual utility and consumption amounts would probably not commute; hence, it is impossible to measure or to know simultaneously the values of these observables from the dataset. Thus, we crystallize the problem by using a Heisenberg-type uncertainty resolution for self-adjoint economic operators. We propose to eliminate any estimation bias by correlating the standard deviations of selected economic operators; this is achieved by replacing the aforementioned observed uncertainties with households’ perceived uncertainties (i.e. corrected standard deviations) obtained through the logarithmic psychophysical law proposed by Weber and Fechner.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1108725Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1623
 G. Becker, “A Theory of the Allocation of Time”, The Economic Journal, 75, 1965, pp.493-517.
 A. De Serpa, “A Theory of the Economics of Time”, The Economic Journal, 81, 1971, pp. 828-846.
 A. Evans, “On the Theory of the Valuation and Allocation of Time”, Scottish Journal of Political Economy, 19, 1972, pp. 1-17.
 R. Gronau, Home Production-A survey. In Handbook of Labour Economics (O. Ashenfelter and R. Layard, eds.), Vol. 1, North Holland, Amsterdam, 1986, pp. 273-304.
 S. R. Jara-Díaz, and C. Guevara,“On the Subjective Valuation of Travel Time Savings”, European Transport Conference, Proceedings of Seminar F, PTRC, London, 1999, pp. 225-236.
 S. R. Jara-Díaz, M.A. Munizaga, P. Greeven, and K.W. Axhausen, “Estimating the Value of Work and Leisure”, ETH E-Collection., 2013.
 O. Gunes, “Theoretical Appraisal of Satisfactory Decision: Uncertainty, Evolutionary Ideas and Beliefs, Satisfactory Time Use” World Academy of Science, Engineering and Technology Economics and Management Engineering Vol: 2, No: 9, 30199, 2015.
 O. Gunes, and A.T Aktuna-Gunes, “Satisfactory Time Use Elasticities of Demand and Measuring Well-Being Inequality through Superposed Utilities”, Working Paper, Centre d’Economie de la Sorbonne, Université Paris I, 2015.19.
 M-A. Diaye, F. Gardes, and C. Starzec, “GARP Violation, Economic Environment Distortions and Shadow Prices: Evidence from Household Expenditure Panel Data”, Annales d'Économie et de Statistique, No. 90, 2008, pp.3-33.
 F. Gardes, “Full Price Elasticities and the Opportunity Cost for Time”, Documents de Travail du Centre d’Economie de la Sorbonne (CES), 2014.
 H.A. Simon, “Rational Choice and the Structure of the Environment”, Psychological Review, 63, 1956, pp.129-138.
 B.M.S. Van Praag, P. Frijtersb, and A. Ferrer-i-Carbonel, “The Anatomy of Subjective Well-Being”, Journal of Economic Behavior & Organization, 51, 2003, pp.29-49.
 M. Deserno, “Uncertainty Relation for Self-Adjoint Operators”, Max- Planck-Institute for Polymer Research, September, 2014.
 A. Deaton, and J. Muellbauer, Economics and Consumer Behavior. Cambridge: Cambridge University Press, 1980.
 P. Busch, P. Lahti, and R.F. Werner, “Proof of Heisenberg's Error- Disturbance Relation”, Physical Review Letters. 111, 160405, 2013.
 T. Miyadera, and H. Imai, “Heisenberg’s Uncertainty Principle for Simultaneous Measurement of Positive-Operator-Valued Measures”, Physical Review A, 78, 052119, 2008.