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Where do preferences come from?

Author

Listed:
  • Franz Dietrich

    (CERSES - UMR 8137 - Centre de recherche sens, ethique, société - UPD5 - Université Paris Descartes - Paris 5 - CNRS - Centre National de la Recherche Scientifique, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Christian List

    (LSE - London School of Economics and Political Science)

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. Preferences are usually assumed to be fixed 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 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 properties cease to be salient. 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.

Suggested Citation

  • Franz Dietrich & Christian List, 2013. "Where do preferences come from?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00978007, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00978007
    DOI: 10.1007/s00182-012-0333-y
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    References listed on IDEAS

    as
    1. Franz Dietrich, 2014. "Anti-terrorism policies and the risk of provoking," Journal of Theoretical Politics, , vol. 26(3), pages 405-441, July.
    2. Dietrich, Franz & List, Christian, 2009. "A reason-based theory of rational choice," MPRA Paper 36112, University Library of Munich, Germany, revised 2011.
    3. Dufwenberg, Martin & Kirchsteiger, Georg, 2004. "A theory of sequential reciprocity," Games and Economic Behavior, Elsevier, vol. 47(2), pages 268-298, May.
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    6. Franz Dietrich & Christian List, 2011. "A model of non-informational preference change," Journal of Theoretical Politics, , vol. 23(2), pages 145-164, April.
    7. Matthew Rabin, 1998. "Psychology and Economics," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 11-46, March.
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    12. Robert Sugden, 2005. "Why rationality is not a consequence of Hume's theory of choice," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 12(1), pages 113-118.
    13. Dryzek, John S. & List, Christian, 2003. "Social Choice Theory and Deliberative Democracy: A Reconciliation," British Journal of Political Science, Cambridge University Press, vol. 33(1), pages 1-28, January.
    14. Gold, Natalie & List, Christian, 2004. "Framing as Path Dependence," Economics and Philosophy, Cambridge University Press, vol. 20(2), pages 253-277, October.
    15. R. H. Strotz, 1955. "Myopia and Inconsistency in Dynamic Utility Maximization," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 23(3), pages 165-180.
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    17. Michael Bacharach, 2006. "The Hi-Lo Paradox, from Beyond Individual Choice: Teams and Frames in Game Theory," Introductory Chapters, in: Natalie Gold & Robert Sugden (ed.),Beyond Individual Choice: Teams and Frames in Game Theory, Princeton University Press.
    18. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
    19. Peter J. Hammond, 1976. "Changing Tastes and Coherent Dynamic Choice," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(1), pages 159-173.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Marek Hudik, 2020. "Equilibrium as compatibility of plans," Theory and Decision, Springer, vol. 89(3), pages 349-368, October.
    2. Dietrich, Franz & List, Christian, 2016. "Reason-Based Choice And Context-Dependence: An Explanatory Framework," Economics and Philosophy, Cambridge University Press, vol. 32(2), pages 175-229, July.
    3. Nicolas Sirven & Thomas Barnay, 2017. "Expectations, loss aversion and retirement decisions in the context of the 2009 crisis in Europe," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(1), pages 25-44, April.
    4. Amitai Etzioni, 2014. "Crossing the Rubicon," Challenge, Taylor & Francis Journals, vol. 57(2), pages 65-79.
    5. Anaïs Carlin, 2014. "Consumer Choice Theory and Social Learning," GREDEG Working Papers 2014-13, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    6. repec:hal:wpaper:halshs-01249632 is not listed on IDEAS
    7. Kadziński, Miłosz & Ghaderi, Mohammad & Dąbrowski, Maciej, 2020. "Contingent preference disaggregation model for multiple criteria sorting problem," European Journal of Operational Research, Elsevier, vol. 281(2), pages 369-387.
    8. Acharya, Avidit & Blackwell, Matthew & Sen, Maya, 2015. "Explaining Attitudes from Behavior: A Cognitive Dissonance Approach," Working Paper Series rwp15-026, Harvard University, John F. Kennedy School of Government.
    9. Lauren Larrouy & Guilhem Lecouteux, 2018. "Choosing in a Large World: The Role of Focal Points as a Mindshaping Device," Working Papers halshs-01923244, HAL.
    10. Boissonnet, Niels & Ghersengorin, Alexis & Gleyze, Simon, 2020. "Revealed Deliberate Preference Changes," MPRA Paper 101756, University Library of Munich, Germany.
    11. Dietrich, Franz & List, Christian, 2016. "Mentalism Versus Behaviourism In Economics: A Philosophy-Of-Science Perspective," Economics and Philosophy, Cambridge University Press, vol. 32(2), pages 249-281, July.
    12. Marek Hudik, 0. "Equilibrium as compatibility of plans," Theory and Decision, Springer, vol. 0, pages 1-20.
    13. Tomasz Gajderowicz & Maciej Jakubowski & Sylwia Wrona & Ghadah Alkhadim, 2023. "Is students’ teamwork a dreamwork? A new DCE-based multidimensional approach to preferences towards group work," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    14. Bernat Mallén Alberdi, 2023. "How Have Video-on-Demand Platforms Shaped Our Preferences?Endogenous Preferences in a Cultural Market," IREA Working Papers 202316, University of Barcelona, Research Institute of Applied Economics, revised Nov 2023.
    15. Bernat Mallén, 2023. "“How Have Video-on-Demand Platforms Shaped Our Preferences? Endogenous Preferences in a Cultural Market”," AQR Working Papers 202308, University of Barcelona, Regional Quantitative Analysis Group, revised Nov 2023.
    16. Sebastian Silva-Leander, 2011. "On the Possibility of Measuring Freedom: A Kantian Perspective," OPHI Working Papers 49, Queen Elizabeth House, University of Oxford.
    17. Robin Cubitt & Daniel Navarro-Martinez & Chris Starmer, 2015. "On preference imprecision," Journal of Risk and Uncertainty, Springer, vol. 50(1), pages 1-34, February.
    18. Mattauch, Linus & Hepburn, Cameron, 2016. "Climate policy when preferences are endogenous – and sometimes they are," INET Oxford Working Papers 2016-04, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    19. Jacobs Martin, 2016. "Accounting for Changing Tastes: Approaches to Explaining Unstable Individual Preferences," Review of Economics, De Gruyter, vol. 67(2), pages 121-183, August.
    20. Mingli Zheng, 2018. "Subjective value judgments of distributive justice and legal decision-making," Asia-Pacific Journal of Regional Science, Springer, vol. 2(1), pages 177-194, April.

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    More about this item

    Keywords

    preference formation; preference change; properties; motivations; reasons; endogenous preferences; formal versus substantive rationality; conceptualization; perception;
    All these keywords.

    JEL classification:

    • 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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