Measuring the intrinsic value of choice

We propose a method to quantify the intrinsic value of choice as a distinct component of utility separate from outcome-based utility. Using this conceptual approach, we discuss how the instrumental value of choice can be separated from its intrinsic value and derive a measure of the utility loss from constrained choice. In an incentivized online experiment, we estimate the average intrinsic value of choice at 8.9% of participants’ endowments. This suggests that the ability to choose itself constitutes a non-trivial source of utility. This observation has implications for the evaluation of policies and institutions that limit individual choice, such as command-and-control policies, even without altering material outcomes.