Where do preferences come from?
AbstractRational choice theory analyzes how an agent can rationally act, given his or her preferences, but says little about where those preferences come from. Instead, pref- erences are usually assumed to be �xed and exogenously given. Building on related work on reasons and rational choice (Dietrich and List forthcoming), we describe a framework for conceptualizing preference formation and preference change. In our model, an agent's preferences are based on certain motivationally salientproperties 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36115.
Date of creation: 2010
Date of revision: 2011
preference formation; preference change; properties; motivations; reasons; endogenous preferences; formal versus substantive rationality; perception;
Other versions of this item:
- Dietrich Franz & List Christian, 2011. "Where do preferences come from?," Research Memorandum 005, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Franz Dietrich & Christian List, 2010. "Where do preferences come from?," Levine's Working Paper Archive 661465000000001137, David K. Levine.
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; 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
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