| Abstract | Utility, the core of Economics, expands in two directions: First, preserving the basic connotation of the neoclassical decision utility, incorporate beliefs and broad social preferences beyond material interests into the utility function, to better characterize and predict decision-making behaviors. The other is the rise and development of experience utility, on the basis of criticizing the neoclassical decision utility, which intends to better describe and measure individuals’ happiness experience or welfare situation. We systematically review the main achievements of the two routes and show that non-material preference, distorted beliefs and bounded rationality are causes of the inconsistence between neoclassical decision utility and experience utility. The new expanded decision utility and experience utility complement each other well and have great theoretical and practical significance. On this basis, we establish a lifelong happiness function and explore possible social and economic structural changes for this happiness goal direction. |