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In this happiness speech by Dan Gilbert, he discusses how individuals can misinterpret their own happiness or well-being because of certain cognitive judgements and assumptions.
Gilbert explains how humans have the unique ability to work out experiences in their head before trying it out in real-life. Gilbert mentions that while we each have an automatic response to whether something is better or worse, this experience simulator is often misguided because of what he calls the “impact bias.” This bias comes about because individuals tend to overestimate the impact and significance of certain events. The happiness we feel is actually something that is synthesized, where people experience certain cognitive processes that allow them to face the reality of the world they live in, in a more positive and comfortable way.