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The Dynamic Evolution of Preferences

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  • Aviad Heifetz
  • Chris Shannon

    ()

  • Yossi Spiegel

Abstract

This paper develops a general methodology for characterizing the dynamic evolution of preferences in a wide class of strategic interactions. We give simple conditions characterizing the limiting distribution of preferences in general games, and apply our results to study the evolutionary emergence of overconfidence and interdependent preferences. We also show that this methodology can be adapted to cases where preferences are only imperfectly observed.

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File URL: http://hdl.handle.net/10.1007/s00199-006-0121-7
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Bibliographic Info

Article provided by Springer in its journal Economic Theory.

Volume (Year): 32 (2007)
Issue (Month): 2 (August)
Pages: 251-286

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Handle: RePEc:spr:joecth:v:32:y:2007:i:2:p:251-286

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Related research

Keywords: Evolution of preferences; Evolutionary stability; Overconfidence; Interdependent preferences; C72; D01;

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References

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