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The economics of cultural formation of preferences

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  • Pichler, Michael

    (Center for Mathematical Economics, Bielefeld University)

Abstract

This paper introduces a generalized representation of the formation of continuous preferences (which can reflect different intensities). The preference intensity that a child adopts is formed as the collective outcome of all role models for preference intensities - which are derived from the socioeconomic actions of adults - that it socially learns from. We then show how the adopted preference intensities induce preferences over socioeconomic choices. Finally, this cultural formation of preferences process is endogenized as resulting out of optimal parental socialization decisions. This framework thus endogenously determines the intergenerational evolution of preference intensities and the induced preferences.

Suggested Citation

  • Pichler, Michael, 2011. "The economics of cultural formation of preferences," Center for Mathematical Economics Working Papers 431, Center for Mathematical Economics, Bielefeld University.
    • Handle: RePEc:bie:wpaper:431
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    References listed on IDEAS

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    Cited by:

    1. Buechel, Berno & Hellmann, Tim & Pichler, Michael M., 2014. "The dynamics of continuous cultural traits in social networks," Journal of Economic Theory, Elsevier, vol. 154(C), pages 274-309.
    2. Cerqueti, Roy & Correani, Luca & Garofalo, Giuseppe, 2013. "Economic interactions and social tolerance: A dynamic perspective," Economics Letters, Elsevier, vol. 120(3), pages 458-463.
    3. Alberto Bisin & Thierry Verdier, 2010. "The Economics of Cultural Transmission and Socialization," NBER Working Papers 16512, National Bureau of Economic Research, Inc.

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