Mispredicting the hedonic benefits of segregated gains.

The hedonic benefit of a gain (e.g., receiving 100) may be increased by segregating it into smaller units that are distributed over time (e.g., receiving 0 on each of 2 days). However, if these units are too small (e.g., receiving 1 cent on each of 10,000 days), they may fall beneath the person's hedonic limen and have no hedonic benefit at all. Do people know where their limens lie? In 6 experiments, participants predicted that the hedonic...