Where do preferences come from?
Abstract
Rational choice theory analyzes how an agent can rationally act, given his or her preferences, but says little about where those preferences come from. Instead, preferences are usually assumed to be .xed and exogenously given. We introduce a framework for conceptualizing preference formation and preference change. In our model, an agent.s preferences are based on certain .motivationally salient.properties of the alternatives over which the preferences are held. Preferences may change as new properties of the alternatives become salient or previously salient ones cease to be so. We suggest that our approach captures endogenous preferences in various contexts, and helps to illuminate the distinction between formal and substantive concepts of rationality, as well as the role of perception in rational choice.Download Info
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Paper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 005.Length:
Date of creation: 2011
Date of revision:
Handle: RePEc:dgr:umamet:2011005
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Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm
Related research
Keywords: microeconomics ;Other versions of this item:
- Dietrich, Franz & List, Christian, 2010. "Where do preferences come from?," MPRA Paper 36115, University Library of Munich, Germany, revised 2011.
- Franz Dietrich & Christian List, 2010. "Where do preferences come from?," Levine's Working Paper Archive 661465000000001137, David K. Levine.
- D03 - Microeconomics - - General - - - Behavioral Economics; Underlying Principles
- D0 - Microeconomics - - General
- C0 - Mathematical and Quantitative Methods - - General
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-12 (All new papers)
- NEP-CBE-2011-02-12 (Cognitive & Behavioural Economics)
- NEP-EVO-2011-02-12 (Evolutionary Economics)
- NEP-GTH-2011-02-12 (Game Theory)
- NEP-HPE-2011-02-12 (History & Philosophy of Economics)
- NEP-PKE-2011-02-12 (Post Keynesian Economics)
- NEP-UPT-2011-02-12 (Utility Models & Prospect Theory)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Dietrich, Franz & List, Christian, 2012. "Reasons for (prior) belief in bayesian epistemology," MPRA Paper 36111, University Library of Munich, Germany.
- Dietrich, Franz & List, Christian, 2012. "Mentalism versus behaviourism in economics: a philosophy-of-science perspective," MPRA Paper 37813, University Library of Munich, Germany.
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