A Theory of Chosen Preferences

B. Douglas Bernheim, Luca Braghieri, Alejandro Martínez-Marquina and David Zuckerman

American Economic Review, 2021, vol. 111, issue 2, 720-54

Abstract: We propose and develop a dynamic theory of endogenous preference formation in which people adopt worldviews that shape their judgments about their experiences. The framework highlights the role of mindset flexibility, a trait that determines the relative weights the decision-maker places on her current and anticipated worldviews when evaluating future outcomes. The theory generates rich behavioral dynamics, thereby illuminating a wide range of applications and providing potential explanations for a variety of observed phenomena.

JEL-codes: D11 D81 D91 Z13 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (13)

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DOI: 10.1257/aer.20190390

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