Utility Bounce-Back (UBB) Hypothesis : The Power Of Expectation

Would you rather be told of a raise or a reduction in your level of satisfaction? The obvious answer for a rational utility maximizing consumer is a raise. That is why the Utility Bounce Back (UBB) Hypothesis is proposes that your utility will bounce back if a reduction is made via the lowest point to the mid-level than if it is directly lowered to the mid-level. It is a seemingly simple theory while taking a subtle approach to propose a new way in which austerity measures, that have the capacity to elicit public outcry, can be taken with behavioral reaction of consumers considered. With the UBB, austerity measures, and other interventions that reduce consumer utility can be carried out leaving the consumer more satisfied than if a direct or rapid reduction were applied