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3. The Utility Model

The Mathematics of Utility

Why a 1-point gain in satisfaction is not always equal.

The traditional policy frameworks (Benthamite and Rawlsian) assume that the 0-10 Life Satisfaction scale is linear. However, psychological and economic research demonstrates that human wellbeing follows a curve of diminishing marginal utility.

Diminishing Marginal Utility

A Shift In Perspective

The public no longer cares about raw numbers; they care about actual happiness. A £100 boost changes a struggling person's life, but is just pocket change to someone wealthy.

Use the slider below to see how the exact same +1 Life Satisfaction boost affects different citizens in reality.

Citizen Status
😭
LS: 1.0
Value of a +1 BoostMassive Impact
Meaning:

Heating their home, paying rent, or affording three meals a day.

Struggling (0)Wealthy (10)

To accurately model a population, a simulation must convert raw 0-10 Life Satisfaction scores into non-linear utility values.