Consumer Choice Theory and Social Learning
In this paper we formalize learning as a determinant of individual choice. We model economic agent as an individual who makes her choice according to a specific set of experiences, which evolves over time as the agent learns from both her personal history and her social environment. We link preferences to choices through the notion of hierarchy of wants. We present an axiomatic characterization, inspired by Georgescu-Roegen (1950, 1954), of the individual choice mechanism in a social environment. Following these axioms, we show that an agent may change her choice from one period to another and remain nonetheless rational. The learning mechanism allows for the modification of individual preference ordering over time as well as it implies irreversibility, in the sense that economic changes leave a mark in the decision making process.
|Date of creation:||Apr 2014|
|Contact details of provider:|| Postal: 250, rue Albert Einstein, 06560 Valbonne|
Web page: http://www.gredeg.cnrs.fr
More information through EDIRC
Please 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.:
- Alan Kirman & Miriam Teschl, 2006. "Searching for identity in the capability space," Journal of Economic Methodology, Taylor & Francis Journals, vol. 13(3), pages 299-325.
- Franz Dietrich & Christian List, 2013.
"Where do preferences come from?,"
International Journal of Game Theory,
Springer;Game Theory Society, vol. 42(3), pages 613-637, August.
- Franz Dietrich & Christian List, 2010. "Where do preferences come from?," Levine's Working Paper Archive 661465000000001137, David K. Levine.
- Franz Dietrich & Christian List, 2013. "Where do preferences come from?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00978007, HAL.
- Dietrich, Franz & List, Christian, 2010. "Where do preferences come from?," MPRA Paper 36115, University Library of Munich, Germany, revised 2011.
- 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).
- George A. Akerlof, 2007. "The Missing Motivation in Macroeconomics," American Economic Review, American Economic Association, vol. 97(1), pages 5-36, March.
- Cynamon Barry Z. & Fazzari Steven M., 2008. "Household Debt in the Consumer Age: Source of Growth--Risk of Collapse," Capitalism and Society, De Gruyter, vol. 3(2), pages 1-32, October.
- Gowdy, John M. & Mayumi, Kozo, 2001. "Reformulating the foundations of consumer choice theory and environmental valuation," Ecological Economics, Elsevier, vol. 39(2), pages 223-237, November. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:gre:wpaper:2014-13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Patrice Bougette)
If references are entirely missing, you can add them using this form.