inner experience, and non-reactivity to inner experience. The two most important factors for improving forecasts are observing and acting with awareness. The observing factor assesses how often an individual attends to their sensations, emotions, and outside environment. The ability to observe allows the individual to avoid focusing on one single event, and be aware that other experiences will influence their current emotions. Acting with awareness requires assessing how individuals tend to current activities with careful consideration and concentration. Emanuel, Updegraff, Kalmbach, and Ciesla (2010) stated that the ability to act with awareness reduces the impact bias because the individual is more aware that other events co-occur with the present event. Being able to observe the current event can help individuals focus on pursuing future events that provide long-term satisfaction and fulfillment. See also Happiness economics List of cognitive biases List of memory biases Prospect theory Welfare economics References Further reading On the projection bias External links Daniel Gilbert "Why are we happy?" (video lecture), TED.com, Retrieved 2009-08-29 Psychlopedia on Affective Forecasting Daniel Gilbert, video interview Affective forecasting on Psychology Today Psychological methodology Behavioral economics