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Endogenous Preferences and Social-Dilemma Institutions

Anders Poulsen () and Odile Poulsen

Journal of Institutional and Theoretical Economics (JITE), 2006, vol. 162, issue 4, 627-660

Abstract: There is robust experimental evidence that some people have selfish preferences, and others have social, or other-regarding, preferences. This paper seeks to explain why there is such preference heterogeneity. In our approach preferences are endogenous to the economy's institutional setup. We consider institutions of the social-dilemma type. Our main result characterizes the endogenous preferences: There is, under a wide set of institutional setups, a unique endogenous preference distribution, where reciprocal, altruistic, and selfish preferences coexist. These results may contribute to understanding how institutions affect preferences.

JEL-codes: B41 C70 C72 D74 Z13 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (7)

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