Happiness for Sale: Do Experiential Purchases Make Consumers Happier Than Material Purchases?

@article{Nicolao2009HappinessFS,
  title={Happiness for Sale: Do Experiential Purchases Make Consumers Happier Than Material Purchases?},
  author={Leonardo Nicolao and Julie R. Irwin and Joseph K. Goodman},
  journal={Econometrics: Econometric \& Statistical Methods - General eJournal},
  year={2009}
}
Previous theories have suggested that consumers will be happier if they spend their money on experiences such as travel as opposed to material possessions such as automobiles. We test this experience recommendation and show that it may be misleading in its general form. Valence of the outcome significantly moderates differences in respondents' reported retrospective happiness with material versus experiential purchases. For purchases that turned out positively, experiential purchases lead to… 

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