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Cultural Formation of Preferences and Assimilation of Cultural Groups

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  • Michael M. Pichler

    (Institute of Mathematical Economics, Bielefeld University)

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    Abstract

    Based on the cultural formation of continuous preferences framework of Pichler (IMW Working Paper No. 431, 2010), this paper analyzes the evolution of preferences and behavior in a two cultural groups setting. We show that the qualitative dynamic properties depend crucially on what parents perceive as the optimal preferences for their children to adopt. Under inter– generationally fixed optimal preferences, the preferences of the cultural groups will always stay distinct. If the optimal preferences coincide with those derived from the representative group behavior, then a multitude of convergence path types can realize. These contain both an inter–generational assimilation process toward the same preference point, as well as inter–generational dissimilation.

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    File URL: http://www.imw.uni-bielefeld.de/papers/files/imw-wp-438.pdf
    File Function: First version, 2010
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    Bibliographic Info

    Paper provided by Bielefeld University, Center for Mathematical Economics in its series Working Papers with number 438.

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    Length: 37 pages
    Date of creation: Aug 2010
    Date of revision:
    Handle: RePEc:bie:wpaper:438

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    Related research

    Keywords: Continuous Preferences; Assimilation; Cultural Groups; Endogenous Preferences; Preference Evolution; Socialization;

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