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How to Shape Preferences? Testing a Simple Economic Model of Endogenous Preferences

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  • Marek Jenöffy-Lochau

    (Büro am Carlsplatz)

Abstract

Preferences" is a key concept in economic theory. Economics has not, however, been able to satisfactorily explain the origin of preferences. A changing media system reveals the importance of clarifying the origin of preferences. Preferences originating means endogenous preferences. The Signal-Preference Model (SPM) provides a new algorithm for modeling endogenous preferences using empirical results of communications research. This paper examines how the SPM performs in the framework of economic decision theory. The results of the SPM are compared with Expected Utility Theory, Bayes, and Prospect Theory. Surprisingly, this endogenous preference model seamlessly fits into microeconomics and decision theory.

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  • Marek Jenöffy-Lochau, 2019. "How to Shape Preferences? Testing a Simple Economic Model of Endogenous Preferences," Post-Print hal-04139360, HAL.
    • Handle: RePEc:hal:journl:hal-04139360
    Note: View the original document on HAL open archive server: https://hal.science/hal-04139360
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    References listed on IDEAS

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    3. Zimmerman, F.J. & Bell, J.F., 2010. "Associations of television content type and obesity in children," American Journal of Public Health, American Public Health Association, vol. 100(2), pages 334-340.
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