Kahneman distinguishes two selves: the experiencing self that lives moment to moment, and the remembering self that keeps score and makes future choices. They want different things.
Peak-end rule and duration neglect
Colonoscopy studies: a longer procedure ending less painfully is remembered as better than a shorter painful one — total suffering ignored. Duration neglect: memory weights peaks and endings, not integral of pain/pleasure.
Life satisfaction vs experienced well-being
"How satisfied with your life?" activates remembering self — sensitive to salient cues (coin on copier, recent marriage, dating question priming). Experience sampling and Day Reconstruction Method measure momentary affect — the U-index (% time unpleasant).
Money buys life evaluation above ~$75k household income but not more experienced happiness on average — satiation of small pleasures when wealthy.
So what
Vacation photos serve remembering self; Tuesday afternoon serves experiencing self. Policy: reduce U-index, not only lift ladder scores. Personal: allocate time to activities with low U-index cost (social contact, attention to food).