More on Hedonic Damages

Coincidentally, another pair of authors has just posted a paper ("Does Happiness Adapt: A Longitudinal Study of Disability with Implications for Economist and Judges", Oswald & Powdthadee) arguing that damage awards for disabling events ought to take into account the possibility of hedonic adaptation of those who are disabled: 

Economics ignores the possibility of hedonic adaptation (the idea that people bounce back from utility shocks). This paper argues that economists are wrong to do so. It provides longitudinal evidence that individuals who become disabled go on to exhibit recovery in mental wellbeing. Adaptation to severe disability, however, is shown to be incomplete. The paper suggests ways to calculate the level of compensatory damages for the pain and suffering from disablement. Courts all over the world currently use ad hoc methods.

While I haven't read the article, it's bound to be even more convincing than the Bagenstos & Schlanger article, because (1) it uses British data, and (2) it uses lots & lots of economics.....