Evolving Preferences

Christo A. Pirinsky ()
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Christo A. Pirinsky: University of Central Florida, Business Administration and Finance

Chapter 10 in A Theory of Dynamic Preferences, 2026, pp 147-157 from Springer

Abstract: Abstract This chapter provides an insight into the evolution of individual preferences. It is based on two assumptions. The first one is that the reward (utility) associated with an outcome reflects both its usefulness as well as its scarcity. The second one is that by maximizing contact with high-reward options, societies are effectively reducing their scarcity. Both assumptions are intuitive. The first one tells us that more scarce resources need to be more rewarding to motivate people to acquire them, while the second one tells us that people are naturally trying to make high-reward options more available. The central point of this chapter is that the greater availability of high-reward options reduces the value of these options. As a result, the inherited rewards associated with these options could become unjustifiably high. The chapter refers to this possibility as the reward inflation hypothesis. Reward inflation leads to overconsumption, which could be harmful. As a result, societies are expected to develop social norms regulating the consumption of high-reward options. Indeed, most spiritual teachings have been emphasizing the need for moderation. The chapter also analyzes how reward inflation has reshaped societal attitudes toward food, security, social connections, and wealth.

Keywords: Golden mean; Maslow’s hierarchy of needs; Overconsumption; Reward inflation; Scarcity (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-032-13334-2_10

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DOI: 10.1007/978-3-032-13334-2_10

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