Happiness, Ideal Happiness, and Reference Point

Policy makers such as European Commission, UK, and Japan are now interested in happiness as a policy tool. Happiness is normally measured by a likert scale. The comparison of happiness scale needs common understanding of happiness. However, happiness distribution can be classified into three types: normal, skewed and twin-peak. For example, the distributions in Japan and Hungary are twin-peak. This implies that individuals have different reference points culturally. The reference points were tested to apply question about ideal happiness. Some may refer to 100% happiness, but the other may refer to 50% happiness and 50% unhappiness.

Quantitative survey was conducted in Japan, Thailand and Philippines. It included questions about their current happiness on a 0-10 scale and ideal happiness. Adjusted by ideal happiness, the distribution was skewed distribution similar to Nordic countries. The survey's result confirmed that distribution of happiness embodied the difference of ideal happiness.