If we have a spectacular experience, such as an excellent meal or a the dream vacation, when does it become part of our endowment (i.e., another positive tick mark that we accumulate)?  When does it become a source of comparison against which other relevant experiences are judged  and contrasted (the next meal or vacation just doesn’t compare)? In the former case, the spectacular experience makes us happier, but in the latter case it can diminish our ability to enjoy future events.

Griffin, D. & Gonzalez, R. Endowment and contrast: A lens for happiness research. (2013). In S. David, I. Boniwell and A. Conley Ayers (Ed.),  Oxford Handbook of Happiness. Oxford, UK: Oxford University Press, p 35-59. PDF

Abstract

In this chapter we review the Endowment-Contrast (E-C) framework for assessing wellbeing (Tversky & Griffin, 1991), examine extensions and applications, and apply it to new empirical approaches to well-being research. The E-C model is a set of tools to use in thinking about-and measuring-happiness and well-being. The framework fits firmly in the “social constructionist” perspective on well-being, focusing as it does on the cognitive aggregation of hedonic impact over time and the distinction between objective circumstances and subjective value. We first review the historical context in which the framework was developed, describe the fundamental building blocks of the theory, and illustrate selected developments and applications. We then describe the generalization of the original framework and its application to the choice-judgment discrepancy, and dose with a discussion of the relevance of the framework to new distinctions in the measurement of well-being.