Money can’t buy happiness

Happiness at any given moment may depend more on learning than on rewards.

Image credit: Jan Antonin Kolar (CC0)

Many people believe they would be happier if only they had more money. And events such as winning the lottery or receiving a large pay rise do make people happy, at least temporarily. But recent studies suggest that the main factor driving happiness on such occasions is not the size of the reward received. Instead, it is how well that reward matches up with expectations. Receiving a 10% pay rise when you were expecting 1% will make you feel happier than receiving 10% when you had been expecting 20%.

This difference between an expected and an actual reward is referred to as a reward prediction error. Reward prediction errors have a key role in learning. They motivate people to repeat behaviours that led to unexpectedly large rewards. But they also enable people to update their beliefs about the world, which is rewarding in itself. Could it be that reward prediction errors are associated with happiness mainly because they help us understand the world a little better than before?

To test this idea, Blain and Rutledge designed a task in which the likelihood of receiving a reward was unrelated to the size of the reward. This study design makes it possible to separate out the contributions of learning versus reward to moment-by-moment happiness.

In the task, volunteers had to decide which of two cars would win a race. In the ‘stable’ condition, one of the cars always had an 80% chance of winning. In the ‘volatile’ condition, one car had an 80% chance of winning for the first 20 trials. The other car then had an 80% chance of winning for the next 20 trials. The volunteers were not told these probabilities in advance, but had to work them out by playing the game. However, on every trial, the volunteers were shown the reward they would receive if they chose either of the cars and that car went on to win. The size of the rewards varied at random and was unrelated to the likelihood of a car winning.

Every few trials, the volunteers were asked to indicate their current level of happiness on a scale. The results showed that volunteers were happier after winning than after losing. On average they were also happier in the stable condition than in the volatile condition. This was especially true for volunteers with pre-existing symptoms of depression. Moreover, happiness after wins did not depend on how large the reward they got was, but instead simply on how surprised they were to win.

These results suggest that how we learn about the world around us can be more important for how we feel than rewards we receive directly. Measuring happiness in various types of environment could help us understand factors affecting mental health. The current results suggest, for example, that uncertain environments may be especially unpleasant for people with depression. Further research is needed to understand why this might be the case. In the real world, rewards are often uncertain and infrequent, but learning may nevertheless have the potential to boost happiness.