(35) To cardinalize
preferences, in this framework, gambles are set up between the various outcomes.
Finally, although the theoretical elaboration of "objective happiness" uses an "observer" to make time-tradeoff judgments so as to cardinalize hedonic utilities, the "observer" is not to be found in Kahneman's empirical studies, and even the theoretical elaboration fails to allow for heterogeneity in observer judgments/preferences.
In order to cardinalize momentary utilities, Kahneman introduces an "observer." (179) The observer ranks temporally extended episodes ("profiles"), each consisting of a series of affective states (positive, negative, or neutral) experienced for some length of time.
In his empirical implementation of the "objective happiness" approach, Kahneman has not actually surveyed an observer or observers to rank hedonic profiles and thereby cardinalize hedonic utilities.
Although we are aware of the fact that it would be possible to "cardinalize
" these dummy variables, for example, by using a team's "point difference" to the league leader (or the team currently ranked 16th), our measure has the advantage that it is easier to interpret: The knowledge that a team is currently lagging 10 points behind the leader does not provide any information on whether it is still possible for this team to win the championship (for instance, if the number of remaining matches is larger than four matches).(24) We admit, however, that the 29-34 fixture period might be viewed as somewhat arbitrary.
The first view is that the interpersonal comparison can and should hinge on the degree to which the Winners' and Losers' welfare-constitutive desires are satisfied or frustrated, independent of the extent to which Winners and Losers improve or decline with respect to criteria of objective value or hedonic tone.(111) The idea, in economists' terms, is to cardinalize
A's and B's preferences so that A's gain from the project can be compared with B's loss.
the Jevons user cost sub-index by setting the initial value of the sub-index equal to the geometric mean of the user costs during the initial period.
These processes allow legislators to cardinalize
preferences, even when preferences are multi-peaked.