the literature is surprisingly silent about how individuals spend their income and how this spending choice affects SWB. In other words, the impact of consumption composition on SWB is unexplored. Ultimately, this is a question of spending efficiency with implications for consumers and scholars. Consumers want to know which consumption goods deliver the largest impact on well-being. Given income, they face a trade-off problem on how to spend most efficiently with respect to SWB-enhancement. Scholars seek to understand what drives people’s consumption choice, whether it is in line with economic utility maximization (efficient), and if not, which “hidden constraints” keep people from choosing efficiently.4