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Institutions as Determinants of Preference Change – A One Way Relation?

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  • Martin Binder

    ()

  • Uta-Maria Niederle

Abstract

In recent economic literature, there has been an increasing interest in modelling preferences as endogenous. Some arguments go along the lines that institutions shape preferences. This paper suggests that adopting a more substantive concept of preferences furthers our understanding of how they systematically shape institutions. We integrate social-psychological concepts and combine them with an account of learning. Thus, a model of the dynamic interrelation between preferences and institutions can be developed. While institutional change can certainly be partly explained in terms of changing incentives, we offer an approach that goes beyond the standard explanation.

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Bibliographic Info

Paper provided by Max Planck Institute of Economics, Evolutionary Economics Group in its series Papers on Economics and Evolution with number 2006-07.

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Length: 23 pages
Date of creation: Jul 2006
Date of revision:
Handle: RePEc:esi:evopap:2006-07

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Related research

Keywords: endogenous preferences; institutional change; learning; attitudes; wants; social instincts;

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Cited by:
  1. Luigi Bonatti, 2007. "Evolution of preferences and cross-country differences in time devoted to market work," Department of Economics Working Papers 0719, Department of Economics, University of Trento, Italia.
  2. Garofalo, Maria Rosaria, 2011. "Il volontariato può sostenere lo sviluppo? Riflessioni metodologiche per la costruzione di un frame work teorico
    [Can the voluntary sector sustain the development path of an economy? Suggestions f
    ," MPRA Paper 40008, University Library of Munich, Germany.
  3. Binder, Martin, 2006. "Evolutionary Economics and Moral Relativism - Some Thoughts," MPRA Paper 1484, University Library of Munich, Germany.

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